Frodo
Atlas Star
Posts: 24,581
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« on: July 13, 2013, 10:59:03 PM » |
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« edited: July 13, 2013, 11:00:37 PM by Frodo »
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Tax cuts, like every other economic policy, is subject to the law of diminishing returns. The first comprehensive income tax cuts under Kennedy and Reagan did wonders because taxes were high enough to begin with that the beneficial impact of tax cuts on the economy could be felt. Now that taxes (at least on income) are relatively low compared to the rest of the developed world, the impact of further tax cuts (like George W. Bush's tax cuts in 2001 and 2003) are muted.
There is no economic case for further tax cuts. Republicans and conservatives know this (I think), so they have turned to ideology instead.
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