Debt Reduction Must Accompany Tax Cuts to Stimulate the Economy

Martin Sullivan writes that tax cuts alone are incapable of stimulating the economy.  Sullivan argues that without credible steps towards deficit reduction, any tax cut will not overcome the uncertainty surrounding large debt levels.  As a consequence, the cuts will not result in job growth.

See Martin A. Sullivan, "Economic Analysis: The Basic Economics of the Bush Tax Cuts," 2010 TNT 181-3 (September 16, 2010).

Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.