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The Backward Art of Tax Cutting

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Author Info
L. Randall Wray

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Abstract

This policy note examines the case for large tax cuts, focusing on the issues surrounding the purpose and overall size of the needed cut. Although Congress has passed a significant package of tax relief, many have worried that the budget surplus on which it was based will never appear. Thus, some have advocated "triggers" to reduce the size of the tax cuts should tax revenues begin to decline. This note argues that such a proposal represents "backward thinking.

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Paper provided by Levy Economics Institute, The in its series Economics Policy Note Archive with number 01-5.

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Handle: RePEc:lev:levypn:01-5

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Hyman P. Minsky, 1992. "The Financial Instability Hypothesis," Economics Working Paper Archive 74, Levy Economics Institute, The. [Downloadable!]
  2. Wynne Godley, . "Fiscal Policy To The Rescue," Economics Policy Note Archive 01-1, Levy Economics Institute, The. [Downloadable!]
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  1. Wynne Godley, . "Kick-Start Strategy Fails to Fire Sputtering U.S. Economic Motor," Economics Policy Note Archive 02-1, Levy Economics Institute, The. [Downloadable!]
  2. Dimitri B. Papadimitriou & L. Randall Wray, . "Are We All Keynesians (Again)?," Economics Policy Note Archive 01-10, Levy Economics Institute, The. [Downloadable!]
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This page was last updated on 2009-11-30.

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