Tuesday, August 8

I stand corrected

Lexington Green, who posts at Chicago Boyz, commented on my comment over at Tom's weblog:

"...'cut taxes and spend'. at least with 'tax and spend' you had the coin!"

They have the coin now. Cutting tax rates has led to a huge increase in tax revenue collected by the government. Same thing happened with Reagan.

Then, as now, the problem is 100% on the spending side.

Posted by: Lexington Green | August 8, 2006 12:52 PM

Now ol' LG has at least some UChicago econ training, so I have very reason to believe him, even though I haven't checked the figures.

Does anyone know exactly how cutting taxes = more tax revenue? Is it because people have more to spend and spend more?

Paul, didn't you go to UChicago? ;-)
 

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