I worried aloud when Bush-43 pushed through his structural tax cuts (creating a obvious structural budget deficit), partly using justifications based on cyclical downturns.
And, as predicted, no one raised taxes, once the worst of the cycle was over and the Fed started to raise rates.
When we do, today, what Bush-43 did, promising "permanent" tax cuts, we are no longer all Keynesians.
We're just fools.
Update: sames goes for "Tax Holidays". Unless the people proposing them also say when the "Tax Jubilee" kicks in that pays back the holiday, who's interested in passing out this kind of crack?
Friday, November 19, 2010
Taxes: Structural Changes in Taxes as a Response to Cyclical Turns
