3 ms·

>> that cutting taxes, and having no way to pay for them, in the midst of rampant inflation is an idiotic idea. Let's see what happens here in the U.S. :-/

jabroni_salad 4y ago
I believe Kansas tried in in 2012
- duxup 4y ago
  That seemed like a race to 0.
hn_throwaway_99 4y ago
The most recent US federal legislation (the Inflation Reduction Act) actually raises government revenue significantly. While the Inflation Reduction Act probably won't do much short term with respect to inflation, it should reduce the deficit over the long term. I can definitely understand arguments and debates around the proper level of taxation. But while it may be acceptable and even a good idea to substantially lower taxes and raise the deficit during periods of low inflation, it is the height of idiocy to do that during a period of high inflation.
- votepaunchy 4y ago
  Debt reduction of ~$6B/year is rather minimal given trillion dollar annual deficits. “CBO estimates that Public Law 117-169 will result in a net decrease in the unified deficit totaling $58.1 billion over the 2022-2031 period. That decrease in the deficit is estimated to result from an increase in direct spending of $50.6 billion and an increase in revenues of $108.7 billion.” https://www.cbo.gov/publication/58455 https://www.cbo.gov/publication/58455
refurb 4y ago
But increasing spending through increased debt is also idiotic.
- puchatek 4y ago
  Depends what you spend the money on. If it's infrastructure then it's likely a wise investment.
  - kortilla 4y ago
    This is an example of fairy tail thinking though because so many people say this. Government spending money that didn’t directly come from taxes during inflation is just going to pour fuel on the inflation fire, regardless of how useful the investment. Money needs to be taken out of circulation, not added.
    - ethbr0 4y ago
      Inflation decreases the cost of historical debt balances too... ... and who has a large balance of historical debt?

jabroni_salad 4y ago

I believe Kansas tried in in 2012

duxup 4y ago
That seemed like a race to 0.

hn_throwaway_99 4y ago

The most recent US federal legislation (the Inflation Reduction Act) actually raises government revenue significantly. While the Inflation Reduction Act probably won't do much short term with respect to inflation, it should reduce the deficit over the long term. I can definitely understand arguments and debates around the proper level of taxation. But while it may be acceptable and even a good idea to substantially lower taxes and raise the deficit during periods of low inflation, it is the height of idiocy to do that during a period of high inflation.

votepaunchy 4y ago
Debt reduction of ~$6B/year is rather minimal given trillion dollar annual deficits. “CBO estimates that Public Law 117-169 will result in a net decrease in the unified deficit totaling $58.1 billion over the 2022-2031 period. That decrease in the deficit is estimated to result from an increase in direct spending of $50.6 billion and an increase in revenues of $108.7 billion.” https://www.cbo.gov/publication/58455 https://www.cbo.gov/publication/58455

refurb 4y ago

But increasing spending through increased debt is also idiotic.

puchatek 4y ago
Depends what you spend the money on. If it's infrastructure then it's likely a wise investment.
- kortilla 4y ago
  This is an example of fairy tail thinking though because so many people say this. Government spending money that didn’t directly come from taxes during inflation is just going to pour fuel on the inflation fire, regardless of how useful the investment. Money needs to be taken out of circulation, not added.
  - ethbr0 4y ago
    Inflation decreases the cost of historical debt balances too... ... and who has a large balance of historical debt?