Tax cuts just line the pockets of the rich and cause deficits don they?
No. By putting more money in private hands, tax cuts stimulate the economy. Tax cuts actually benefit rich and poor alike. With more capital available to business, greater productivity is achieved, leading to more jobs being created, which benefits the poor as well as the rich. During the 1980’s in the U.S Reagan cut taxes and vastly increased military spending, causing the deficit to blow out in the short term. There is a theory known as supply-side economics, which postulates that cutting taxes can actually increase government revenue through greater economic growth. This theory is controversial and has fallen somewhat into disrepute. But even if supply-side economics is wrong this provides no support for socialism because deficits can be controlled simply by cutting government spending. The long run effect of the Reagan economic reforms was one of the longest bull markets in American history, and a country with one of the lowest deficits as a percentage of GDP in the world come the
