On Sat, 29 Jan 2005 17:56:29 -0500, Erik Reuter <[EMAIL PROTECTED]> wrote:
> * Dan Minette ([EMAIL PROTECTED]) wrote:
> > From: "JDG" <[EMAIL PROTECTED]>
> 
> > > has reduced the government's take of GDP to 17%.
> >
> > No.  It merely has changed the source of the take.  In 2000, total
> > government spending was 18.4% of GDP.  In 2003, it was 19.9%.  Using
> > T-bills to finance the government doesn't reduce the take.
> >
> > >Thus, it is not just progressivity, it is the size of the
> > >government's share in the economy that is also debated.
> >
> > Should the size be measured in terms of spending and future
> > oblications?  Would government have zero size if there was a total tax
> > holiday next year and the government was totally financed by debt?
> 
> You are absolutely right that the important figure is government
> spending.
> 
> I just wanted to add that, except for those who believe in voodoo
> economics and the tooth fairy, a tax cut without a spending cut is not
> really a tax cut at all, but rather a tax shift -- to the future.
> 
> --
> Erik Reuter http://www.erikreuter.net/

Agreed.

-- 
Gary Denton
Easter Lemming Liberal News Digest

- I think Brin was on to something in 'Earth' in suggesting the right
to vote be dependent upon subscribing to some opposing viewpoint
media.
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