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My problem with this article is that he basically asks us to assume what he wants to demonstrate: "Anyone who believes that repealing the corporate income tax,
by ajscherer 16y ago
My problem with this article is that he basically asks us to assume what he wants to demonstrate:
"Anyone who believes that repealing the corporate income tax, the capital gains tax, and the death/gift tax would not increase economic growth by at least 0.12 percentage points needs to consult a psychiatrist, not an economist."
Edit: The more I think about it, this analysis is silly. Sure, a sustained increase in GDP growth rate will dominate a decreased tax rate in the long term. Unfortunately, what happens during the "me and/or my kids are still alive" term matters. For example in his "you're insane if you don't believe it" scenario where a 3% decrease in tax rate leads to a .12% sustained increase in economic growth, the government would take in less revenue for the first 150 years. In his "what I'd like to believe" scenario with the 3% cut and a .26% sustained growth increase, it would only take like 70 years to break even.
Nice try.
- deleted 16y ago[deleted]