Republican Self-Scrutiny (4): Taxes

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Republican Self-Scrutiny (4): Taxes

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Editado: Mar 11, 2013, 8:19am

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Fev 21, 2013, 9:05pm

Republicans are correct on the philosophy of supply-side economics, they're just wrong when it comes to where the inflection point on taxes lies. It's higher than what the party currently advocates.

Taxes, though, aren't the only focus of supply-siders. Supply-side economics focuses on, as one might expect, the supply side of the demand-supply equation. Supply-siders seek to remove barriers to production that tend to keep the supply side of the equation lower than it should be. Taxes are just one of those barriers, and they are far from being a problem for the economy right now. There's scope for raising taxes without doing great harm to the economy.

Republicans should shift their focus from taxes to those other things that hold down production, e.g., poor infrastructure, inadequate human capital, and over-regulation.