Sorry, but tax cuts are not stimulative

There I said it. Now take a deep breath, Republicans, and admit to yourselves that if you really think about it, it's true. All things being equal, tax cuts do not stimulate the economy.

Of course, all things aren't equal. If politicians are spending $10 billion on new roads and schools and suddenly decide to give a $10 billion tax break to the wealthiest 1% of Americans, then in order to achieve a balanced budget they would have to shift that $10 billion away from the roads and schools and deliver it into the well-lined pockets of their buddies in the C-suite. That would be "fiscal responsibility" in action. But it's also just a redistribution of wealth from one area of the economy to another, with no actual stimulus.


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