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Monday, July 21, 2008
Claims of "Magical" Tax Cuts Continue
The Center on Budget and Policy Priorities has released a new report discussing the oft-cited, and completely false claim that tax cuts pay for themselves. Even though this statement has been refuted many times, by CBPP, by outside academics, and even by President Bush's own Treasury Department, the claim continues to float around.
CBPP does a nice job hammering home the facts again about the impact of tax cuts in a very digestible brief:
The claim that tax cuts "pay for themselves" — i.e., cause so much economic growth that revenues rise faster than they would have without the tax cut — has been made repeatedly in recent years and is one of the many tax policy issues that is likely to receive renewed attention in light of the upcoming election. As explained briefly below, this claim is false. The evidence shows clearly that tax cuts lose revenue.
CBPP: EVIDENCE SHOWS THAT TAX CUTS LOSE REVENUE
Posted by Adam Hughes
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