BAD FAITH. My question for people who still argue that tax cuts actually increase revenues: shouldn’t conservatarians who believe this be opposed to tax cuts? After all, they’ll just produce more revenues that the government can use to spend and (according to supply-side premises) strangle the economy! The answer, of course, is that nobody really believes in this kind of supply-side economics. Everyone knows that, outside of exceptionally high rates, tax increases result in more revenue, all things being equal — which is why governments like to raise them when they can. Arguments to the contrary are just for especially gullible rubes.
–Scott Lemieux
