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To: Sean_Anthony
In simpler terms, tax cuts do not pay for themselves. Put in a slightly more complicated way, tax cuts do not generate enough extra activity to make up the missing revenue.

Bullcrap. Instead of making up a hypothetical answer, just look at the statistics after every major tax cut (e.g., the Kennedy and Reagan tax cuts). In each case, economic activity rose following the tax cuts. For additional theoretical perspective, look at the Laffer Curve and its statistical support. This clown has no clue about the statistical evidence.

6 posted on 03/22/2017 12:25:29 PM PDT by econjack
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To: All

This is a legitimate question, which conservatives stuck with Old Normal thinking would instinctively conclude as . . . yes, of course tax cuts pay for themselves, via economic stimulus.

But that was all pre 2007 Apocalypse. It was pre 20 Trillion in debt. It was pre collapsed Labor Participation Rate and it was pre automation.

If you cut taxes, in a world where Quantitative Ease simply printed $4 Trillion over the past 6 or so years (that’s a full 1/4 of GDP) on a whim, there could be no evidence it would achieve any stimulus effect. All the stimulus possible should be in the system when you just wave your hand and create $4 trillion from nothingness.

The tax cut would clearly add to deficit. But QE has reduced rates to nearly zero, so that deficit doesn’t really add to the debt — but it doesn’t add to anything else either.

Remember, in a world of automation, a company making more money (via lower taxes) doesn’t hire more people. It just sends the money to shareholders. The business doesn’t expand. They just buy back their own shares.

Point being, it’s a valid question that doesn’t have an obvious answer anymore.


9 posted on 03/22/2017 12:33:35 PM PDT by Owen
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