"The deficit" is NOT a valid response - the tax cuts have brought in MORE revenue by fueling economic growth. Whether the tax cuts paid for themselves is a simple question. There are (a) what revenue was just before the tax cuts, (b) what revenue was projected to be with the tax cuts, using static analysis, (c) what revenue was projected to be without the tax cuts, using static analysis, and (d), what revenue actually turned out to be following the tax cuts. If (d) is the highest of those, and Fed policy was neutral or restrictive, the tax cuts paid for themselves. Period. Money is fungible - the fact that you can't trace individual dollars to specific companies' or sectors' growth is irrelevant - you never can. All you have is the before and after and whether any other major factor might intervene - i.e., if the Fed was cutting rates maybe that could be why the economy grew. But it wasn't - rates were initially low but the Fed raised them and tax revenue grew even faster.
2007-01-26
01:57:45
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12 answers
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Politics