SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : American Presidential Politics and foreign affairs
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TimF who wrote (43133)5/8/2010 4:53:29 PM
From: DuckTapeSunroof  Read Replies (1) of 71588
 
I believe that the MOST IMPORTANT LESSON to learn from the 30 years of modern economic experimentation is that:

1) cutting taxes (by itself) does not reduce the size of government... as long as deficits can be run, and as long as sovereign currency can be printed, the size and growth of government remains unscathed by mere reductions in tax rates.

SPENDING must also be reduced.

And,

2) The only way that modern governments have been able to eliminate major deficits is by maintaining GROWTH (which produces a steadily increasing stream of revenue to government, as well as rising incomes all around and REDUCING SPENDING.

Reducing tax rates has clear benefits but --- unless DEFICIT SPENDING is *also* reduced at the same time --- than reducing tax rates is ultimately completely ineffective at controlling either the size of government, or the debts that it leaves behind.

And rising DEBT is clearly a tax in itself... simply one that defers for a few years the reckoning.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News