![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
Reason #2 to Vote No on Question 1
Oct. 3rd, 2008 03:16 pmWhat this is all about
Reason #2: Tax cuts may actually increase government spending!
Thanks to![[livejournal.com profile]](https://www.dreamwidth.org/img/external/lj-userinfo.gif)
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.
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.
