General Discussion
In reply to the discussion: Are you prepared to trade tax cuts for progressive policy legislation? [View all]ProfessorGAC
(64,983 posts)Tax cuts on those more than 3x the median household income can be mathematically proven to have no positive net impact on the macroeconomy, absent massive additional borrowing. (See 1981 to 1990)
And, cuts on more than 2x median income are not beneficial unless the economy is in full recession. Even then, the effect is temporary. (See 2003 to 2008)
So, tax cuts require borrowing to have any effect, deficits become a political hammer for the Rs, any near term added spending on MFA or UHC, as less entrenched spending, becomes the first target for reductions.
Then, to survive the deficit complaints, tax increases become part of the conversation. That's another political hammer for the Rs.
It's a path with no assured endpoint. It's a bargain that doesn't result in win/win.