Are you sure you want to delete this post?
Chet Ruminski Wrote: For the last hundred years after every major tax cut there has been a recession. No secret. So why do the Republicans push for tax cuts knowing a recession will follow???
Chet -- Here we go again. You've made this outlandish statement in the past, and I believe Carlitos challenged you on it. It simply is not true. There are a variety of factors that come together to cause a recession, and from what I have read, most economists do not subscribe to a single factor.
In any case, intuitively, a tax cut across the board spurns more consumer spending which gives a boost to the economy. Tax increases, on the other hand, take money out of the private sector and inhibit growth.
Every recession is unique, and most economists do not subscribe to a single theory of the causes and prevention of recessions. Central banks raising interest rates are one often cited, but economists caution that there are usually other factors. The Great Recession was caused by a multitude of factors...a dozen or more.
I would ask you to provide some reliable references to support your statement. In my research to fact check your statement, I could not find any. On the other hand, I can find articles that debunk it, at least in part. Here's one from Politico:
Tyler Fisher, Politico, Sep 27, 2017: How past income tax rate cuts on the wealthy affected the economy
Fisher looked at it from the standpoint of taxing (or cutting taxes) on the rich, but many of those top rate tax reforms cited in the article included middle class tax cuts as well.
"POLITICO looked at each time the country changed the top income tax rate and the following five years of GDP per capita growth rate. The results are similar to the CRS findings: changing the top income tax rate does not have a predictable effect on economic growth."
I will await your references to support your contention.