Taxes, Special Privileges, and “Private Enterprise”

Source: American Institute for Economic Research
by Donald J Boudreaux

“Perhaps the most common misunderstanding of the case for cutting taxes is that the benefits of tax cuts are reaped overwhelmingly by those individuals whose taxes are cut. Because a disproportionately large share of tax revenues are paid by high-income individuals, and because businesses pay more taxes when they are thriving than when they are struggling, it seems to follow that when government cuts taxes, it bestows favors on the rich and successful at the expense of the general public. Progressives and other opponents of tax cuts also believe that whatever benefits reduced rates of taxation might have for the economy as a whole come mainly from the greater spending that tax cuts encourage the rich and successful to do. … But this progressive take on the economic case for cutting rates of taxation is completely mistaken.” (11/17/22)

https://www.aier.org/article/taxes-special-privileges-and-private-enterprise/