Nobel laureate economist Milton Friedman applauds tax cuts primarily on the grounds that they help rein in growth of government spending. Government spends roughly 40 percent of Americans incomes, and U.S. residents and businesses spend an additional 10 percent of income in response to government mandates and regulations.
According to Friedman:
Friedman says that from this point of view, President Bush’s proposals rank very high. He particularly favours ending the double taxation of dividends and moving up the effective date of cuts already on the books.
Source: Milton Friedman (Hoover Institution), What Every American Wants, Wall Street Journal, January 15, 2003.
For text (WSJ subscription required)
http://online.wsj.com/article/0,,SB1042593796704188064-search,00.html
For more on Effects Of Tax Cuts http://www.ncpa.org/iss/tax/
FMF Policy Bulletin\22 January 2003
