One idea about tax cuts

It’s sunny and cool outside, but I am helplessly trying to write at least something for the macro report. I was thinking about how life sucks when you have work to do and already was near a suicide. Suddenly, I’ve found a nice concept about political economy that changed my mind about a possible suicide and understood that life is OK and today I’ve learnt something nice and new.

Whatever about my life and bloody report, here is the concept about tax cuts that one could use somewhere in debates. It is called “Starving the beast” and more info about it could be found here . The main idea is that instead of cutting the government spending and then cutting the taxes, it is more effective to cut the taxes and then the government spending will adjust automatically, since government income will reduce. But read more about it to get a better understanding.

Cheers, Nikita aka Hitman

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One response to “One idea about tax cuts

  1. This seems exciting, moreover, I feel that this could help Latvia way more than regular decrease in gov’t spending. By “starving the beast” in times of huge crisis we could:
    -) allow households to keep more money, i.e., be wealthier
    -) force gov’t to save as it will get less money + won’t be able to borrow

    Maybe we should write a letter to Mr. Repse and suggest this idea? He is crazy enough to go for it!

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