It is well established that price adjust to the money supply. This is, of course, one of two effects. When production has the capacity to grow, then increasing spendable income may increase output. Otherwise, increasing spendable income simply drives inflation Price inflation due to mometary inflation is well established. All other things being comstat, increasing spendable income through across the board tax cuts simply increases the money supply. Lacking any growth, it just drives inflation.
That said, at steady state, taxes have no real economic effect. Real output is the result of labor, resourses, and efficiency. Nominal prices simply adjust to whatever money supply is available, income after taxes. They are not driven by the money people don't have to spend... not on what spendable income might have been if not for taxes.
If we are to accept that monetary inflation will drive price inflation then we must accept that decreasing the tax rate will drive price inflation as well.
Increasing the money supply, increasing govt spending, or decreasing tax rates are no different and have only short lived effect on prices and production. If output is short of full output, then decreasing tax rates or increasing spending will bump output. Once prices and output have adjusted, the magnitude of the rate means nothing.
lol
In other words, you can't do the math or present anything that proves otherwise. You simply have some stupid rule that you've memorize without knowing how the economy functions, even at the most basic effect of inflation.
Dude, how many times do we have to explain real physical assets to you? The economy does not exist in a vacuum, nor can it be described by the few factors you mentioned. That is why statements like yours are entirely clueless to how the real world functions. Your assumptions amount to nothing more than, incorrect assumptions. But hey why don't you google up a bucket load of incorrect fud charts that back up your dumb ass straw-man arguments.
>> It is well established that price adjust to the money supply.
Straw-man
>> This is, of course, one of two effects.
Straw-man
>> When production has the capacity to grow, then increasing spendable income may increase output.
Straw-man
>> Otherwise, increasing spendable income simply drives inflation Price inflation due to mometary inflation is well established.
Straw-man
>> All other things being comstat, increasing spendable income through across the board tax cuts simply increases the money supply.
Straw-man
>> Lacking any growth, it just drives inflation.
Straw-man
>> That said, at steady state, taxes have no real economic effect.
Bullshit straw-man.
>> Real output is the result of labor, resourses, and efficiency.
Straw-man.
>> Nominal prices simply adjust to whatever money supply is available, income after taxes.
Straw-man.
>> They are not driven by the money people don't have to spend... not on what spendable income might have been if not for taxes.
Straw-man
>> If we are to accept that monetary inflation will drive price inflation then we must accept that decreasing the tax rate will drive price inflation as well.
Straw-man
>> Increasing the money supply, increasing govt spending, or decreasing tax rates are no different and have only short lived effect on prices and production.
Straw-man.
>> If output is short of full output, then decreasing tax rates or increasing spending will bump output.
Straw-man
>> Once prices and output have adjusted, the magnitude of the rate means nothing.
Straw-man.
ROFL But hey, gratz on being able to poorly express the libtard view of macro-economics under the tyrannical rule of a socialist government.