The Reader may be able to tell my level of boredom, considering the fact that I am pursuing this CBO monograph on Memorial Day. It is structural gibberish to proclaim any mastery over this Paper, but I can state I possess some doubt as to the use and choice of data assignment of elasticities. The Whole presupposes Marginal propensities exist in the first place, can be assigned definite data reference, and that these Percentage cores do not vary under the magnitude of the Tax Cuts. They follow this with sole reference to 2002 Income Returns, expressing effects coming from a rebounding economy. Early Training on Bell Curve behavior endured by myself leads me to wonder at this type of Study.
Marginal propensities enjoy a Stretching capacity which I have previously attempted to make Economists aware. They possess far greater power and magnitude with greater degree of economic resource underemployment, much less power and size under conditions of Full Employment; technically, they zero out. Marginal Tax Cuts thereby enjoy much impact under a contracting economy, but much less or no effect under a expanding economy. It is theoretical that Tax Cuts generate a negative effect under a Resource-driven Inflation of a Full Employment economy. Tax Cuts are not a Solution for Everything.
Fed containment of Inflation through Monetary controls equally holds a Marginal propensity of control. It also zeros out as Inflationary pressures build. The only real Curative of Inflation is higher Taxes. My Estimate of the situation, deeply at odds with conventional Economic Thought, suggests that the Bush Tax Cuts should have been eliminated by Tax Year 2006, and that excess Investment capacity cancels any effort made by the Fed to control Inflation. I would personally advocate immediate cancellation of all of the Bush Tax Cuts to forestall Inflation, and raise the general Government revenues. lgl
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