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The Backward Art of Tax Cutting

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  • L. Randall Wray

Abstract

This policy note examines the case for large tax cuts, focusing on the issues surrounding the purpose and overall size of the needed cut. Although Congress has passed a significant package of tax relief, many have worried that the budget surplus on which it was based will never appear. Thus, some have advocated "triggers" to reduce the size of the tax cuts should tax revenues begin to decline. This note argues that such a proposal represents "backward thinking.

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  • L. Randall Wray, "undated". "The Backward Art of Tax Cutting," Economics Policy Note Archive 01-5, Levy Economics Institute.
    • Handle: RePEc:lev:levypn:01-5
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    References listed on IDEAS

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    1. Wynne Godley, "undated". "Fiscal Policy To The Rescue," Economics Policy Note Archive 01-1, Levy Economics Institute.
    2. Hyman P. Minsky, 1992. "The Financial Instability Hypothesis," Economics Working Paper Archive wp_74, Levy Economics Institute.
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    Cited by:

    1. Dimitri B. Papadimitriou & L. Randall Wray, "undated". "Are We All Keynesians (Again)?," Economics Policy Note Archive 01-10, Levy Economics Institute.
    2. Wynne Godley, "undated". "Kick-Start Strategy Fails to Fire Sputtering U.S. Economic Motor," Economics Policy Note Archive 02-1, Levy Economics Institute.

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