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View Full Version : What happens to government if they cut taxes


camy
Mar 31, 2009, 02:57 PM
If government cut tax money from worker paycheck then what effects should government face?

rootje
Apr 1, 2009, 12:19 PM
Let's see.. . The government would have less money. This means that that its debt increases, which means
That the interest payments go up, which means that you need more money to pay the interest, which at some
Point in the future means increasing taxes.

Oh wait, instead of raising taxes we learnt the past 8 years that you can ignore the problem as well and
Hope it goes away :)