Tax cuts: Felix Salmon vs. John Taylor

May 27, 2009

My Reuters Commentary pal and fellow snappy dresser Felix Salmon wonders how noted Stanford economist John Taylor can be worried about big budget deficits and also be in favor of low taxes: “Or maybe deficits caused by permanent tax cuts are somehow to be preferred to deficits caused by temporary stimulus spending”

Me: Yes, they are! The deficits would likely be smaller since the tax cuts are more likely to generate stronger — certainly more sustainable — economic growth, as Taylor explains.


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Permanent fiscal stimulus results in lower debt-to-GDP ratios than temporary fiscal stimulus? Really?

Posted by Felix Salmon | Report as abusive

The idea of our country,s budget deficits, and lowering taxes seems impossible, true. But putting myself at risk hear this.The original U.S. Treasury was based on gold.If we use oil in a simmilar way, buy using the Alaska Reserve to pump it from, and having it run by the Army, to defend and controll it as to protect the environment, and disbursement.Use the oil money to go into the New Health Programs, repair Social Security, keeping GM,and others going to promote envioronmentally safe cars, and boosting imployment , putting familey’s back into lost homes. Helping us become energy independant,and controlling the price of gas in this Country as to insure no more overpricing,not just so the big oil can gain a notch. The Americian people need to gain a few notches.And if they won’t employ it ,the truckers can dock there trucks and demand it. While they can still afford their vehicles.And if immagrants stay they have to pay for schools, roads, police and fire. To put money back into our system , no more paying for there free ride. We pay taxes.

Posted by Pat | Report as abusive