Kuttner rewrites history and twists logic to conclude that more government investment (remember the Soviet Union?) and higher taxes are needed to promote growth.
The oft-cited $ 150 billion Reagan tax increase of 1982 represents a five-year total. On an annual basis, it amounted to roughly $ 30 billion a year and offset only a small fraction of the tax cuts of 1982, 1983, and 1984. Even though he concedes that the 1982 tax increase "restored less than half the revenue losses" of the Economic Recovery Act, Kuttner chooses to attribute seven years of strong growth to this tax increase instead of the net tax reductions.
The fact that statists such as Kuttner are not embarrassed by such convoluted theorizing helps to explain their dwindling relevance around the world.
Robert J. Genetski
Robert Genetski & Associates