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Any economics majors here
Bush has submitted his budget and in it is another hugh tax cut. The government is running a 307 billion dollar deficit and yet Bush is proposing another tax cut.
Can anyone explain to me how adding to the national debt (paying the interest on the national debt is the governments third largest budget expense the last I heard) is a good thing?
Does anyone buy into the idea that tax cuts spur the economy thus the government actually increase their tax revenue?
Republicans point to Reagans tax cuts and how it spurred the ecomomy thus increasing the governments tax revenue. This appears to be BS. When Reagan entered office the national debt was actually less than 1 trillion dollars and when he left office it exceeded 4 trillion dollars. And Bush senior actually had to violate his "Read my lips. No new taxes." and raise taxes following Reagans tenure.
Can some of you economics majors enlighten me please?
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