Tuesday, February 19, 2008

The Laffer Curve

Tax cuts do NOT pay for themselves. It is entirely possible that they are a good idea anyway, but not because they raise tax revenues.

Besides, I always thought this argument was a bit odd since one of the objectives of conservatives is to reduce the size of the government - that smaller government in and of itself is a good thing. So why would we want to raise more tax revenue to expand the government?

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