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Perennial Tax Cuts

October 24th, 2018 · No Comments

  • Tax cuts are seen by some as the necessary, indeed almost the only instrument for economic growth. A sort of magical formula for all times and circumstances.
  • The resulting deficits should be met with public spending cuts, so the agenda really is shrinking the state.
  • This overlooks large distributional consequences, and there is little to suggest it works beyond the short-term demand boosting effect.
  • But one can always demand the next tax cut.
  • Perhaps the most useful element is actually to provide pressure to boost the efficiency of public spending.

Source: Perennial Tax Cuts | Seeking Alpha

Tags: Economic Policy