[Ernest_at_the_Beach]

I want to see Kudlow take him on!

I quit watching the Capital Report after I finally figured out he was partial to the Dems. He had me fooled for awhile though!

[fooman]

He had me fooled too, until he became more and more partisan after the elections.

He even did stories about how Lott was mean to dem lobbyists after the election.

One thing to bear in mind about this 1.3 trillion dollar tax cut. The economy will make 150 trillion over the same ten year or so time frame. So the effects are small and the cuts may have to be bigger to have a bigger postive effect.

Also macro econ (especially kenyesian) types like to say that one dollar of gov spending is the same as a dollar tax cut, whereas supply siders like to say that there is a feedback effect (like in a PID loop for you electrical engineers out there).

So one dollar only costs the government 60 to 70 cents or so depending on how one 'tunes' the model.

This is due to a higher velocity of economic activity through individual initiative, than if the gov just spent the money on welfare cheese.

[fooman]

For dynamic scoring to be wrong, you have to believe that micro econ is wrong.

In other words, if you tax or charge more for a good, demand must be perfectly inelastic.

Of course we all know intuitively this is wrong. If you double the price of gas people will use less of it.

And so it goes. If you tax people's wages more, they will work less and consume more 'leisure time' instead like they do in Europe.