PrintFebruary 22, 2009
Where am I wrong?
This is almost too simple. I must have miscalculated, but here goes. The annual total paid by individual taxpayers (excluding FICA and Medicare) is around a trillion dollars.
Suppose we cut the individual tax rate to 0 for a year instead of blowing a trillion on the ill-conceived and hastily passed trillion dollar stimulus package that passed with less due diligence than anyone in the private sector would insist on for a mere billion dollar expenditure?
By the end of the year, the economy would be so robust that businesses would be unable to find workers without paying huge raises. If you cut taxes for two years, the GDP will have grown by trillions of dollars and we could hold a telethon to raise enough money to pay back the 2 trillion in return for making the cut permanent.
Even if my scenario is a tad too optimistic, does anyone think it wouldn't be a better stimulus than the current put-money-into-the-pockets-of-corrupt-politicians spending plan?
