blatham wrote:
Do you hold that tax cuts are always good? Do you hold that this theory is a traditional conservative theory?
Tax cuts are usually good if spending is equally considered.
Here is the scenario. I see it as a tug of war. Liberals are tugging for more spending programs and higher taxes and Conservatives have argued for cutting spending and taxes. The main problem is that to get elected, it is becoming more and more the case where more programs are being promised to voters, thus spending keeps spiraling out of control, not only due to new programs but largely due to old programs built in growth rates of spending, example social security, medicare, etc. Entitlement spending is virtually impossible to slow down, due to these entitlement groups screaming bloody murder any time any little dent in their checks are suggested.
Add to this the argument that tax cuts may at certain times stimulate tax revenues, but of course there is disagreement among economists on this issue, and it is virtually impossible to determine exactly what happens because so many other economic factors also affect the scenario.
So liberals and Democrats promise more programs and more taxes, which will break the country, and Republicans promise more programs and less taxes, which will also break the country. I think we should return to conservative policies, which I see little chance of happening any time soon, unless circumstances or economic reality can somehow force it. We see that in California where deficits are not allowed for in the long run, the state will need to pay the piper of go flat broke.