Wednesday, October 24, 2007

Just Because You Say It Doesn't Make It True

It's kind of crazy that media types just don't laugh in the faces of politicians who continue to assert that cutting taxes raises revenues. They should laugh in their faces because tax cuts, do not, in fact, raise revenues. James Surowiecki tries to kill this undead nonsense for good:
This supply-side orthodoxy is striking in a couple of ways. First, it requires Republican politicians to commit themselves publicly to a position that is wrong—and wrong not as a matter of ideology or faith but as a matter of fact. Saying today that tax cuts will increase tax revenues is not like saying that bombing Iran constitutes a sensible foreign policy, or that education vouchers will wreck the public schools. It's more like saying that the best way to treat sick people is to bleed them to let out the evil spirits. Second, despite the fact that the supply-side faith has no grounding in reality, within the Republican Party there is little room for dissent on the subject, as Jonathan Chait details in his new book, The Big Con. Last week, the blogger Megan McArdle wrote that she had a book review for an unnamed right-wing publication spiked because in it she dared suggest that, in the U.S., tax cuts decreased government revenues.

Read the whole thing.

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