05-12-2011, 04:54 PM
The Republican (Ryan) plan that passed the House is supposed to be a plan to balance the budget, but it contains tax cuts. How could cutting taxes help balance the budget since less taxes would mean less revenue? Standard Republican answer: Tax cuts stimulate more economic activity and therefore lead to more net revenue than the "face value" reduction of revenue due to tax cuts. IOW, trickle down.
This idea is clearly an article of faith amongst a large percent (probably a large majority) of Republicans. But is this faith based on actual empirical evidence? I don't see it. Can someone provide the empirical evidence to back up that claim?
This idea is clearly an article of faith amongst a large percent (probably a large majority) of Republicans. But is this faith based on actual empirical evidence? I don't see it. Can someone provide the empirical evidence to back up that claim?