Do you know there is something to be said for tax cuts as a way of stimulating the economy. The problem is when you cut taxes and keep on spending without reducing the deficit or you spend so freely that you outpace the economy you get into serious trouble. Clinton understood this, Reagan understood this, and JFK did as well. All three of those presidents cut taxes , in Clintons case he also cut spending and reduced the deficit. This is not magic here. In Reagans case he cut the top rates, and also cut them across the board, and created an environment for business to thrive. I have often wondered the last several trillion dollars that both Obama and Bush happily signed away to Banks, Auto companies, and lobby groups, would have been put to better use in the form of massive tax cuts and rebuilding the military which is very badly needed.
Yes--for stimulating the economy. But we have a massive debt on our hands and we are in a recession. So yes, cut taxes to stimulate the economy. But I say Do not stop there.
On the other hand, during the up times is when the government can "harvest" the tax revenues from the economy since it is less oppressive to we citizens. This is also the time to cut government spending since most citizens would be able to take care of themselves and businesses are able to thrive from private contracts. Thus, to reduce the debt involves two folds--increase taxes, cut spending.
By how much and how far remains to be seen, but one thing is clear--balanced budget or deficit spending during upswings is a no no.