It worked during the Reagan years. Tax rates went down and government revenues went up. Here Larry Elder Makes the Common Sense Argument [click to read] that the Austrians are right and the Keynsian way was already given a go in the 1930's. Some would say government spending actually prolonged the depression.
His argument really boils down to this: Most of the stuff in the 'stimulus package' really doesn't help the average Joe but somewhere in the murkey future someone will have to pay the bill. If government tightens its belt now and actually focuses on its Constitutionally mandated functions, it can give meaningful tax relief to citizens. Small business really creates most of the jobs in the Country, so recognize that fact and give some tax relief. You might cut the rate but the increased productivity of an enthused enterprenual sector will pay a lot of bills in the future.
Likewise tax cuts for individuals and families will bolster confidence and lead to more productivity that does not need to be stimulated. You can take a stand for this better plan at http://www.nostimulus.com/.
The creek across the road from Buckhorn Inn
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