Quote Originally Posted by Xiahou
Don't the two passages quoted in Ice's post seem to contradict each other somewhat?
This bit from the article helps square the circle:

Tax increases specifically intended to offset budget deficits largely avoid the negative effects of other kinds of increases, in part by improving the climate of investor confidence.

So not all tax cuts are created equal. Lowered taxes that are not compensated by lower spending will yield growth, but at the expense of deficit and lost investor confidence. Tax increases used to pay back deficits = happy investors.

I'm grossly oversimplifying, of course, but then there's some lovely in-depth studies referenced in the article if ya wanna get serious about crunching the figures.