related to this topic is the expected fiscal effect from tax reductions
and increases
I recommend:
http://www.heritage.org/Research/Taxes/loader.cfm?
url=/commonspot/security/getfile.cfmPageID=5369
(make sure it all fits into one line)
- jacob braestrup
Armchairs,
As the US recession looms larger and longer, Bush and his folk are
found in
the uneasy position of trying some active fiscal policies...
In a very simplistic macro view, raising public expenditures or
lowering
taxes (in the short run) were both considered expansionist fiscal
policies--at least in the sense that both increase public sector
deficits...
they are equivalent policies.
However, in real world policymaking, republicans prefer lower taxes
and
democrats would rather have more expenditures... as if they were
different
policies.
Does this partisan/ideological asymmetry have any real effect? Is
the
equivalence for real... in the short run... in the long run? Do
people
perceive them as different too?
More practically, what is easier to get, lower taxes or higher
expenditures?
Does this apply to the federal as well to the state level?
any reactions?
-JA
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