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Re: Will the Tax Cuts Help Fix the Economy?
by
Macrocompassion
When regular taxes are cut the government has less income and can employ fewer workers and officers. The service that it provides is necessarily reduced and the greater untaxed earnings will need to be spent to cover this loss (and not for increased demands, since now there are more unsatisfied needs). Thus the overall effect of the tax cut on the whole system is nil.
Are we to expect that the Government has the money to continue to employ the same numbers and to provide the same services? If so, then from where does this money come?
In my opinion there is only one way to improve the present situation and that is to create more opportunity to earn by legislating against the holders-out-of-use of natural resources. By transferring taxes off earners and onto land-holders, speculation in this resource would be eliminated and production costs lowered due to the cheaper (unspeculated in) land that is now more freely available. With the land being used properly and the ground-rent being collected instead of our earnings to pay for the government expenses, then there would be a hope for a better future.
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