Eugene David ...The One-Minute Pundit |
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Saturday, November 10, 2007
As Maryland's local legisla-TORS narrowly pass a courageous tax increase, we remembered something we came across quite by accident in Forbeslist -- the way it was buried hints that the rag was almost embarrassed by it:
The Laugher Curve? Bucking conservative orthodoxy, two UC, Berkeley economics professors suggest in a new study that lower taxes do not in fact curb government spending. Christina D. Romer and David H. Romer write that the big federal tax cuts in 1948, 1964, 1981, 2001 and 2003 tended to be followed by spending increases and, within a few years, tax increases. They call their findings consistent with the "shared fiscal irresponsibility" theory, which holds that neither tax-cutters nor spenders care about deficits. Noteworthy conclusion: "No evidence of a starve the beast effect." --W.P.B. HMMMM.
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