- Immediate taxes
- Deferred taxes (including interest)
- Higher interest rates
- Higher inflation
In view of this fact, there is no such thing as a tax cut, there is only a tax shift. You can shift the burden of taxes from investors to wage earners, or from domestic source to foreign sources but eventually the piper gets paid. The only way to lower the tax burden is to reduce government spending (and thus government services.)
Now for the last decade the Republicans have been running a scam: They promise to lower your taxes and that gives them permission to wildly spend on everything their hearts desire including golf trips to Scotland. But voters have caught on to this lie, which is one reason that Barak Obama was elected and we came to a hairs breath of veto proof Senate.
Libertarians know that government spending is the real danger, every service that government provides must prove that the value delivered to citizens exceeds its cost, otherwise we are diverting resources from more profitable use by the private sector.
