Is it just me, or does everyone else watch Stephanie Cutter and get the sense that she’s always running at about 8500 RPMs? Try not to wince when you watch her try and defend her claim that Gov. Romney’s tax plan actually adds 5 trillion dollars to the national debt:
By the way, what’s always lost on liberals when it comes to fiscal policy, is the nature of a free market. Free markets expand when the right economic conditions are present. When markets expand, jobs are created. When jobs are created, more tax payers are created. It’s counter intuitive, but it’s true: when you lower tax rates and encourage business expansion, you expand the pool of tax payers and thus, increase revenues.
Ms. Cutter outlines and either/or argument where you either raise revenue by increasing the tax burden OR you cut spending. What she (and many on the left) don’t understand is that when you unleash the free market, you raise revenue far more efficiently than merely raising taxes.
For a lesson on why this is the case, check out this video from Prager University: