To really cut taxes, we must cut government spending

Source: American Institute for Economic Research
by Sheldon Richman

“[I]f tax revenues drop while government spending remains constant or grows, real taxation — the extraction and consumption of resources from the industrious sector — will not have been reduced. If government does not take the resources openly, it will do so by stealth, disguising the extraction in arcane tax-code provisions that obscure who really pays the taxes; by acquiring purchasing power at the expense of the bulk of the people by printing money; or by borrowing, which pushes the burden onto future generations. Borrowing not only burdens our descendants, it also diverts resources from productive use today. That creditors choose to lend the government money should not blind us to the fact that they do so only because the government can tax someone to repay the loans.” (10/24/17)