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> you don't need to spend money to give people a tax break. Only if the government is running a surplus, and the tax cuts are less than the size of the surplu
by usefulcat 7y ago
> you don't need to spend money to give people a tax break.
Only if the government is running a surplus, and the tax cuts are less than the size of the surplus.
When the government is running a deficit, any tax cut results in additional debt, the financing of which is paid for by future taxpayers. So yes, in this case (running a deficit) there are measurable costs associated with tax breaks.
- anticensor 7y agoSurplus is not needed as you could print Treasury "banknotes".