Jeff;
That is exactly the presumption some make - that the government should
allocate income to the population, using the tax code as a tool of
social engineering to enact the currently fashionable conception of
"fairness".
If spending on goods and services is stimulative, then most tax cuts
will be stimulative directly, when folks spend, or indirectly, when
folks save and the banks lend to others who will spend.
I hate the fact that my children and grandchildren are being saddled
with an enormous debt to feed a prolifigate government.
Matthew
On Jan 30, 2009, at 11:54 AM, Jeff Wright wrote:
I have to admire, however, the assumption that tax cuts are spending.
This would mean that it is already presumed that your income belongs
to the state to spend as it sees fit. Only by the good graces do they
let us keep some for ourselves.
Mind you, I'm not a supply-sider who believes that tax cuts are
necessarily stimulative. I just believe it's a good idea to not let
the state have too much to begin with, and to starve the beast when it
gets too aggressive and big for its britches.
I used to believe that you can't spend what you don't have, but the
past few months have proven that theory to be utterly false. The
political class just doesn't care any longer about the consequences of
its actions and is operating under the Fernando Lamas economic theory:
" It is better to look good than to feel good."
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