The Tea Party is Right on Tax Cuts. As if this can be disputed

Here are 5 Reasons why they are right and the tax and spenders are out of line.

We examine the evidence on episodes of large stances in fiscal policy, both in cases of fiscal stimuli and in that of fiscal adjustments in OECD countries from 1970 to 2007. Fiscal stimuli based upon tax cuts are more likely to increase growth than those based upon spending increases. As for fiscal adjustments, those based upon spending cuts and no tax increases are more likely to reduce deficits and debt over GDP ratios than those based upon tax increases. In addition, adjustments on the spending side rather than on the tax side are less likely to create recessions.

The reason why this happens is pretty simple. If people get to keep more of their money they can spend it far more efficiently then some government bureaucrat can. They can hire new workers if they are entrepreneurs. Or they can spend more on products and in turn force companies to hire more workers to keep up with demand. They can pay down corrosive debt and thus have more money to spend in the future. There are a whole host of good things that come out of letting people and corporations keep more of their money. I can tell you that I can spend my money far better then even 100 bureaucrats any day.