Denounced incessantly as a “give-away” to the rich, tax cuts have their defenders. Among them is Pete duPont, who writes here that tax cuts do, in fact, produce widespread benefits.
The point I wish duPont had made, though, is exactly why tax cuts “work.” Reducing taxes leaves more resources in the hands of individuals, who then spend or invest according the their needs, desires, and estimations regarding the economy. For the most part, that spending and investment is intelligent and productive. On the other hand, if the government takes more resources into its maw, the results are spending that’s often foolish and never any productive investment. The reason why tax cuts are good is that individual decision-making is more sensible than is political decision-making.
