Debate Politics Forums - View Single Post - If tax-cut strategies don't work, why are they so popular abroad?

SouthernDemocrat · 11-09-07, 03:29 PM

This is an apples to oranges comparison. Tax cuts work in terms of economic stimulus when taxes are high enough to present a drag upon personal production.

So, say your France, and your effective tax rates are three times what ours are, then a tax cut will have a positive effect on your economic growth because your taxes were so high that they were inefficient from an economics perspective and were a drag upon personal productivity.

This is economics 101 here. As to Estonia, what works in Estonia, and its per-capita GDP of less than 10k, might not work in the U.S. with our per-capita GDP of over 40k.

11-09-07, 03:29 PM	#6 (permalink)
SouthernDemocrat Handsome Join Date: Jun 2005 Last Online: 11-12-08 09:01 AM Location: KC Posts: 4,997 Thanks: 411 Thanked 954 Times in 541 Posts Lean: Slightly Liberal Gender: Current Mood:	Re: If tax-cut strategies don't work, why are they so popular abroad? This is an apples to oranges comparison. Tax cuts work in terms of economic stimulus when taxes are high enough to present a drag upon personal production. So, say your France, and your effective tax rates are three times what ours are, then a tax cut will have a positive effect on your economic growth because your taxes were so high that they were inefficient from an economics perspective and were a drag upon personal productivity. This is economics 101 here. As to Estonia, what works in Estonia, and its per-capita GDP of less than 10k, might not work in the U.S. with our per-capita GDP of over 40k. __________________ Charles Krauthammer describing Obama: "He's got both a first-class intellect and a first-class temperament."