Is it Possible to cut both taxes AND spending? (user search)
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  Is it Possible to cut both taxes AND spending? (search mode)
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Author Topic: Is it Possible to cut both taxes AND spending?  (Read 1918 times)
ingemann
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« on: October 21, 2014, 10:03:21 AM »

Is it possible... yes , but honestly you have to be in rather unique situation for it to be a good idea. In a booming economy it would be a bad idea, unless the cut included massive firing of public employers (expanding the workforce), while in a recession it would bad idea, unless the tax cut was for the poorest.
It would be best if it was in a low growth high employment economy.

 Of course there are always exception, some thing have little direct negative economic effect if you cut them, the army, law enforcement etc. Of course there may be a indirect effect (increasing the number of unemployed people with combat training, really not the best idea).

As a example of a government policy, which would have little to none negative effect to cut would be the War on Drugs; it's expensive, it have negative effect on the economy and of course the fact that it's a incredible failure doesn't help either.
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