What is the difference between increasing your sales margin by $500,000 or reducing your expenses by $500,000?

If all else is the same the answer is zero. My personal financial situation is the same if my revenue goes up or if my living expenses go down by the same amount.

So what is the difference between cutting taxes a trillion dollars or increasing expenses a trillion dollars? If all else is the same the answer is nothing.

So how can we determine that tax cuts are the failed policies of the past when we are willing to incur the exact same net effect by spending today? We are simply replacing the “failed policies” of the past with the “doomed” policies of the future.

The main difference between tax cuts and increased government spending is who gets to spend the money.

Tax cuts have the benefit of getting the money into the economy faster, being spent wiser, and based on 100 years of tax research likely INCREASING the dollar revenue generated.

But that would mean that you and I and other taxpayers would get to determine how the economy is stimulated and this Congress and Administration will have none of that.

To argue that cutting taxes is the “failed policy of the past” and that deficit spending is any better or different is like claiming we can fix a short blanket by cutting 18″ off one end and sewing it on the other.

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