Rudy Giuliani, in an excellent Wall Street Journal subscription-only column (NO! This is not an endorsement), has officially moved to the fiscal-policy front of the GOP presidential candidate pack by saying:
Amid fears of an economic slowdown, now is the time to cut taxes, not raise them.
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I think the fears of an “economic slowdown” are way overblown. But a slowdown in the growth of federal revenues to 4%-5% or so a year predicted here (near end of post) instead of the 44% achieved in the past four fiscal years is, I believe, already occurring. The Bush tax cuts, especially those in 2003, fired up the economy and led to the revenue gusher. Another significant cut would do the same, as multiple cutsas multiple cuts have done in Hong Kong, Iceland, Ireland, Australia, the US in the 1980s, and elsewhere.