- 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.
Perennial Tax Cuts
October 24th, 2018 · No Comments
Tags: Economic Policy