Since it's April 15th, I'd like to discuss a common misunderstanding that many well-meaning people on the right have, and that I used to have as well: the idea that if you cut taxes, you automatically reduce the government's grip on the economy, thus benefiting the private economy. It's not necessarily true. Allow me to explain. I'm a big fan of low taxes. If I had my way, there would be no income tax; after all, we did quite well without one until 1913. And certainly, reducing the government's grab will benefit the economy as a whole. But there's a catch: taxes are not the only way that government extracts wealth from the private sector. There are three ways: 1) Taxes 2) Borrowing 3) Inflation, ie the printing press http://www.axiomaticeconomics.com/intro.pdf The main thing I would like to point out is simply this. Many times you will hear someone pledge their undying support to Politician A, because he wants to cut taxes. But if we lower one tax, only to raise another tax (borrowing or inflation), what have we really accomplished? What good will your extra refund do you, if your money buys less, year after year? And if we want to stimulate the economy, what good will it do to cut taxes, but then borrow more, thus crowding out private capital?