Reason #2 to Vote No on Question 1

[asterroc]

What this is all about

Reason #2: Tax cuts may actually increase government spending!

"[T]his paper examines the behavior of government expenditures following legislated tax changes that narrative sources suggest are largely uncorrelated with other factors affecting spending. The results provide no support for the hypothesis that tax cuts restrain government spending; indeed, they suggest that tax cuts may actually increase spending." --Dr. Christina Roma, UC Berkeley Professor of Economics

Thanks to seekingferret for the link. I haven't read through it entirely, but I'm fascinated by the possibility - it seems entirely illogical that tax cuts would NOT reduce government spending. The point here is if people want to reduce government expenditures, cutting taxes may not do the trick.

Comments

[zandperl.livejournal.com]

Right, I read the first few pages and the intro talks about how it's important to tease out the reason behind the tax cut, and how that will influence what the gov't is doing with their spending. I don't know if she discusses MA's particular case, so we'll see.