More Stimulation
22 January 2008
Editor, USA Today
Dear Editor:
Re Carl Davis's "War-time taxes" (Letters, January 22): too many pundits all across the political spectrum argue that the benefit of tax cuts is that they directly stimulate consumption. This argument is mistaken. The true benefit of tax cuts is that they increase the return to work and investment, and thus increase production. Greater consumption is the reward, not the fuel, of greater productive efforts.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Editor, USA Today
Dear Editor:
Re Carl Davis's "War-time taxes" (Letters, January 22): too many pundits all across the political spectrum argue that the benefit of tax cuts is that they directly stimulate consumption. This argument is mistaken. The true benefit of tax cuts is that they increase the return to work and investment, and thus increase production. Greater consumption is the reward, not the fuel, of greater productive efforts.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Sunday June 15, 2008 at 1:51pm