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Liberals are touting a study by, of all people, William Niskanen of the Cato Institute.(The Week ...)(Brief article)
Liberals are touting a study by, of all people, William Niskanen of the Cato Institute. Niskanen is trying to test the theory, held by many conservatives, that tax cuts "starve the beast"--in other words, that they lead to spending cuts. He looked at spending and taxes as a percentage of the economy over the last 25 years. He finds that years in which taxes were low also tended to be years in which spending was high, and vice versa. This is an interesting finding, but it is hardly the slam-dunk case against conservatives that liberals are claiming it is. While Niskanen has accounted for the effects of the business cycle, he has not taken account of the ...
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