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Why do you say crap like that when it's obviously not
Posted on: April 23, 2019 at 08:34:54 CT
MrBlueSky MU
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Despite the banal common sense of this proposition, the Trump administration has tried to pretend that it was different for them: They could make everyone happy by cutting taxes but not spending. The tax cuts would generate so much new economic growth that they would not only pay for themselves but also pay for massive increases in government spending.
However, those who argued that the tax cuts would “pay for themselves” always misunderstood the Laffer Curve. Tax cuts — at least some kinds of supply-side tax cuts — can generate additional economic growth, which means that those cuts seldom result in a dollar-for-dollar revenue loss. But that doesn’t mean they are a completely free lunch.
Yet Donald Trump is on track to be an even bigger spender than Obama. Federal spending has increased by 7.5 percent, or almost $300 billion, over President Trump’s first couple of years in office. Conservatives might applaud the over 8 percent increase in defense spending, although that increase seems unrelated to any strategic plan or external threat. But what should Republicans make of the 7 percent increase in domestic spending?
https://www.cato.org/publications/commentary/budget-deficits-are-only-getting-bigger-under-trump
Despite the banal common sense of this proposition, the Trump administration has tried to pretend that it was different for them: They could make everyone happy by cutting taxes but not spending. The tax cuts would generate so much new economic growth that they would not only pay for themselves but also pay for massive increases in government spending.
However, those who argued that the tax cuts would “pay for themselves” always misunderstood the Laffer Curve. Tax cuts — at least some kinds of supply-side tax cuts — can generate additional economic growth, which means that those cuts seldom result in a dollar-for-dollar revenue loss. But that doesn’t mean they are a completely free lunch.
Yet Donald Trump is on track to be an even bigger spender than Obama. Federal spending has increased by 7.5 percent, or almost $300 billion, over President Trump’s first couple of years in office. Conservatives might applaud the over 8 percent increase in defense spending, although that increase seems unrelated to any strategic plan or external threat. But what should Republicans make of the 7 percent increase in domestic spending?
https://www.cato.org/publications/commentary/budget-deficits-are-only-getting-bigger-under-trump
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Why do you say crap like that when it's obviously not - MrBlueSky MU - 4/23 08:34:54