Tuesday, September 15, 2015

Jeb Bush’s ‘voodoo economics’

By Ruth Marcus Columnist September 15 at 8:21 PM, WashPost

His father had a term that could be applied to Jeb Bush’s tax plan: “voodoo economics,” the unproven notion that massive tax cuts for the rich will spur enough economic growth to justify the budgetary hit.

But there’s an even more fundamental question underlying Jeb Bush’s proposal to cut taxes by — depending on how much voodoo you practice — between $1.2 trillion and $3.7 trillion over 10 years: Why?

What in the country’s current budgetary state suggests that Americans are taxed too much, and to such a degree as to justify the increased deficits or painful spending cuts that would ensue?

Recall that Mitt Romney’s tax proposal, to cut individual tax rates without losing revenue or making the code less progressive, was fanciful, but it was at least based on the notion that the change would be revenue neutral — that is, enough deductions and credits would be curtailed to offset the loss created by lowering rates.

(More here.)


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