Obama's tax cuts amounted to a payroll gain of approximately $7 a week for a single and about $15 a week for married couples.
I think we need to look at the effect of tax cuts on government spending. Historically, government spends more than it receives in taxes.
It is absolutely wrong to assume that deficits are created entirely by lack of revenue. But it is true that deficits are lessoned or set back because of a lack of revenue or tax monies coming in. The government works on the theory of an acceptable deficit.
For the long term, we need to lower that acceptable deficit with cuts in taxes or the money government has to spend.
Raising taxes can bring down the deficit without affecting the spending. It's like taking a second job to help our your family budget but continuing to keep your expenses the same. It helps with the debt, but doesn't address the problem that got you there in the first place.
The right kind of tax cuts, those that are an incentive to produce and supply side tax cuts, will refrain government spending. These types of tax cuts restrain government spending and increase future income and current wealth. IMHO, tax cuts will help in an all important step of smaller government.
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