The Case for Tax Cuts

January 26, 2003

The Case for Tax Cuts

For an antidote to the interventionist Atlantic Monthly, see this open letter signed by a number of conservative economists.

As a rule, government cannot create wealth or expand the economy. Only the private sector can do that. Government can, however, hinder economic growth through excessive taxes, high marginal tax rates, over-regulation, or unnecessary spending. Accordingly, elected leaders should be working to adopt measures that curb or halt government policies that are hurting the economy.

One of the signatories, Milton Friedman, also recently wrote,

I believe that government is too large and intrusive, that we do not get our money's worth for the roughly 40% of our income that is spent by government--federal, state and local--supposedly on our behalf, or the additional 10% or so of income that residents or businesses spend in response to government mandates and regulation.