It can only reduce the deficit, if it does so at all, by heavy taxation, and that would hurt the economy even more. The result would be less taxable income, and the spiral would continue.
You are absolutely correct. That's how Democrats think. They don't believe the Laffer curve at all and just won't concede that tax revenue is increased when taxes are decreased. They ignore JFK's contention that "a rising tide floats all boats" and deride "trickle down" economics. So what's left to them? Raise taxes.
“The result would be less taxable income, and the spiral would continue.”
That is exactly why this is a lie. Sure, extra taxes always look like they’ll increase revenues in a first order analysis. When push comes to shove, though, the second order effects on the economy mean lower revenues, and a widening deficit.
Modern times are like going through the looking glass in the sense that clear lessons from the past are simply being ignored.
We need a real sea change in our government come November and 2012.
And when they tax the hell out of us and make a small dent against the deficit, Washington will hit the throttle to speed up spending all the more. More taxes —> slightly lower deficit —> “OK, let’s spend like crazy again because the ‘problem’ is being solved”
Our republic is doomed unless we can sweep this whole mindset out of our nation.