@CyanoticWasp You talk about my having launched an ad hominem attack, but where is it? Responding directly to @Nullo who simply posted that my thoughts are “utter tripe” without providing any rebuttal of what I stated? That’s not an ad hominem attack. That’s self defense. Ad hominem means trying to discredit an idea or argument by attacking the person who stated the idea. An ad hominem is when a conservative claims that a fact isn’t true because it was printed in the liberal NY Times or a liberal claims an idea isn’t true because it was quoted by Rush Limbaugh. You’re just resorting to schoolyard name-calling. Neither you nor I were guilty of an argument ad hominem in this particular case.
As to arguing with facts, I may err at times, but I actually work at getting my facts straight. I look them up. And when someone proves me wrong, I appreciate the correction. I am actually willing to change my mind of new evidence shows my original idea was wrong. I’m not an ideologue. Fact is I was a Republican at one time. I left the party when I saw the dangerous direction Ronald Reagan was taking it in.
I hold both conservative and liberal views. I think anyone who limits themselves to only one way of thinking does their thought process a severe disservice. I try to be careful to distinguish between conservative as the dictionary defines it and as true conservative thinkers like William F. Buckley lived it, and the New Cons, who are radicals and not conservatives in my mind. If you are of the Buckley school and thought I was lumping you in with the party Rush Limbaugh leads, I apologize. That was not my intent.
Now, about the thought experiment.
The Haitian tax system is strongly regressive. There is an minuscule 2% payroll tax on gross receipts. There is a 10% VAT. That and the Corporate tax of 22.8% on taxable profits are the chief sources of revenue for the current government.
In actual practice, the wealthiest families pay no taxes whatsoever. Virtually all of them have dual citizenship, passports from multiple countries and take money out of the country at will. So cutting the tax rate would have no impact on them. That may make Haiti a poor laboratory for the thought experiment I proposed. But it wasn’t about a country, it was about a tax-cuts-fix-everything mentality, and I strongly maintain that mentality is wrong and produces an economic disaster when taken to the extreme.
However, choosing Haiti does highlight one thing. When a country is as poor as Haiti, its economy can only be improved by government spending or by outside assistance. Cutting taxes removes the possibility of government spending as one of the ways forward.
In the USA, we got out of the Great Depression through government spending. Consumers couldn’t have done the trick. They were financially wiped out. Business couldn’t have done it. Many were bankrupt and those that weren’t completely wiped out by the Depression were hanging on by a thread. Because they had the ability to deficit spend, government was the only remaining institution with the ability to revive the economy. FDR instituted the WPA and put people back to work, and this actually got the GDP back on track with where it should have been shortly before the attack on Pearl Harbor.
Cutting taxes is a good thing when taxes are too high and the National Debt is low. Cutting taxes without cutting spending is a bad thing when they are already so low that debt is huge and still mounting.