In response to:

Do Tax Cuts “Starve the Beast”?

rpexplorer Wrote: Jan 08, 2013 8:56 AM
In the coming labor "adjustment" in response to caps of Obamacare there is opportunity. The expansion of the 29 hour workforce and the independent contractor segment if managed properly will result in significantly less money to gov't coffers. Consider a Canadian or Mexican employment service with a contract to supply U.S. workers to a U.S. company - a 1099 does nothing in this case and the supplied labor is paid from Canada or Mexico so no W-2 and at least in Mexico, all employment taxes are paid by the company with no individual filing. Simple to set up

There’s a debate among policy wonks about whether a no-tax-hike policy is an effective way of restraining the burden of government spending.

At the risk of over-simplifying, the folks who support the “starve the beast” theory argue that there are political and/or economic limits to government borrowing, so if you don’t let politicians tax more, you indirectly impose a cap on total spending (outlays = tax revenue + borrowing limit). We’ll call this the STB approach, for obvious reasons.

Critics of the theory, by contrast, say that a low-tax policy creates fiscal...