I'm puzzling over how the Republicans work this out. If you cut taxes, it will actually raise the revenue of the federal government. That's the theory. So I can see that if you cut taxes, that means more money in the pockets of people, and thus more spending might go on. That would mean more sales tax income for the government. Right?
But see, if the government gets more income later, then that means it got more in taxes, right? So it's a circular argument; cutting taxes means more sales, which means more tax income.
Am I missing something?
Wednesday, April 16, 2008
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