Tax cuts don't "pay for themselves"
by Guest Blogger, 5/5/2004
Recently Rep. Jim Nussle, Chairman of the House Budget Committee, argued against applying PayGo to taxes since "tax cuts pay for themselves."
Perhaps he should have had a chat with the Whitehouse's cheif economist...
Whitehoue Council of Economic Advisors Chairman Mankiw at the National Press Club - November 4, 2003
"Let me be perfectly clear here. Tax reductions are generally not self-financing. In the vast majority of cases, the behavioral responses to changes in tax rates just are not high enough to yield that result."
AP: March 17, 2004
"Taxes and tax cuts pay for themselves" by stimulating the economy, Nussle told reporters Tuesday. "You don't have to, quote unquote, pay for them."
