RebE >> Supply side economics, voodoo economics, has been shown that it does not work.
I think a lot of proofs are heavy on rhetoric. First, a strawman (or an exaggerated claim of pro-suppliers): reducing taxes will increase collected taxes (quickly). Then, you can show that this is rarely true. this is, of course, is a crude logic of a roman tax-collector – how much can I farm from people?
In truth, the first question is simply – would society be more productive with less taxes. According to wiki, Greg Mankiw _criticizes_ suppliers saying – ” “Tax cuts rarely pay for themselves… about one-third of the cost of a typical tax cut is recouped with faster economic growth”
In plain Yinglish, this means that if government returns $100 to the taxpayers, taxpayers will generate $133 from it. Or, if gov takes $100, it leads to a collective loss of $33 ….
Given that government spends almost 40% of US GDP, we are talking serious money lost here …
Can you suggest _any_ policy that can help poor without throwing away 1/3 of it? (and 1/3 is average, the worst of policies are even less efficient)
then, it should be implemented before doing what we are doing now.