I'm relieved to see you use "correct taxes", opening the way for a more nuanced discussion and getting us away from, "no, taxes are necessary! No, taxes are evil!"Quote from jem:
Liberals seem to be arguing that as businesses have less after tax dollars and more regulation and more uncertainty all we need to do to fix the economy is tax business more and give another half a billion to govt cronies.
Could some explain how lowering the correct taxes would not work?
Seriously, is everyone on the left on drugs? Lowering taxes is not austerity, that is the remedy Keynes actually prescribed.
Keynes did advocate tax cuts, generally during a (we're talking balance sheet here) recession, basically for labor, where most of the demand resides. (He also supported increased government spending, during a recession, to temporarily counteract the deficit of demand in the private sector, so in that sense he was obviously comfortable with temporary deficits.)
But the tax cuts he advocated came after a period of relatively higher taxation, which was during the economy's expansion phase. Logically, you would expect him to "be fair" and advocate for a reduction of government spending during expansions, and in fact he did. The expansion phase was supposed to be a time of government surplus, government saving "for a rainy day".
Yes, I know government did not build up a savings during the last expansion. I think we both know why.
