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Bury Keynesian Voodoo Before It Can Bury Us All: Kevin Hassett

If the economy is in deep trouble, there are two economic policy steps that one could take in order to create a positive stimulus: reduce tax rates, or spend more money. (The so-called tax cuts in the 2009 stimulus had little effect because they were primarily credits and deductions, rather than reductions in marginal rates.)

But notice the problem for the Robin Hooders: If you cut tax rates in a recession in order to stimulate the economy, then you are conceding that lower tax rates can be a good thing. And if that?s true, then higher tax rates will be harmful — something the left has always denied.

See, Bury Keynesian Voodoo Before It Can Bury Us All: Kevin Hassett.

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