In response to:

Cutting Taxes, Pro Growth or Not?

wsmith-84 Wrote: Apr 27, 2012 12:46 AM
Forget multipliers. A dollar is a dollar. The economy cares not where It comes from. I see comments rejecting deficit spending as economic stimulus. By the same logic, since half the stimulus was in the form of tax cuts AND since Obama lowerd taxes even further than historic lows of the Bush administration, those don't work either. Targeted spending yields a return on investment. Gratuitous tax cuts don't. It's really that simple. Ask pretty much ANY economist. Queue nutter heads exploding!

There is a debate raging in some circles on tax cuts and growth. The reason is that in January of 2013, America will see the largest tax hike in history if Obama is re-elected. In yesterday’s journal, Nobel Prize winning economist Pete Diamond wrote that higher taxes don’t slow growth. The really interesting part of this piece is he is the first Keynesian economist I have seen that validates the Laffer curve is real. Most try to destroy the logic behind the Laffer curve.

He says,

According to our analysis of current tax rates and their elasticity, the revenue-maximizing...