When Ideology and Tax Cuts Mix, the Economy Loses
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June 28 (Bloomberg) -- One of the most important findingsin my book “The President as Economist” is that ideology andgood economic policy don’t mix, except by accident. Nowhere isthis more evident than in tax policy.
The book examines several major tax cuts by postwarpresidents and finds that prevailing economic conditions are acrucial determinant of whether a tax cut is effective. Thedesign and magnitude of the cut also must conform to theeconomic conditions of the time.