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Originally Posted by JohnR
Curious - I don't think he'll get those deep cuts - just a start point for negotiations.
At what point do the tax cuts stimulate the economy enough to offset the cuts?
I see no real spending cuts attached to this
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No one knows for sure why some cuts are stimulative, and why some just decrease revenue.
I've seen quite a few economists ay that the cut in corporate tax rate will pay for itself, because huge sums of corporate money will come back here that is now parked overseas. If he gets the cuts, we will see. If they don't work, we will know it didn't work.
No, he's not talking about massive spending cuts to offset it, because he is saying it will spur growth to pay for it. That's what happened, presumably, when Clinton and Bush cut taxes, because those cuts were irrefutably followed by increases in tax revenues collected, not decreases.
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