TW: The Republicans have one answer for everything- tax cuts. It is a simple strategy and it is unswerving and dogmatic regardless of our fiscal status, our place in the economic cycle, our spending on wars etc.
When hearing these ideologues I frequently find it relevant to refer back to their comments prior to the start of the Great Recession. Why should we listen to these folks?
Iceland as you may have read has basically imploded, their currency is untradeable and the economy in depression.
From the Cato Institute (leading libertarian, Republican leaning think tank):
"Iceland Comes in From the Cold With Flat Tax Revolution:
Iceland has joined a growing list of nations that have sharply cut their corporate tax rates and adopted flat-rate individual income taxes, with hugely positive consequences on economic performance...The corporate income tax rate is 18%, among the lowest in the industrial world...It reduced its estate tax rate to 5%, implemented a flat tax of just 10% on capital income, repealed a turnover tax on business, and abolished a wealth tax...
From a political perspective, however, the Iceland reform is remarkable. It is the first time a western nation chooses no longer to impose discriminatory tax rates on successful taxpayers.
Tax reform and economic liberalisation have helped Iceland prosper. Let's hope that other industrial nations – and especially [the UK] – will learn from Iceland's success. "
http://www.cato.org/pub_display.php?pub_id=8155
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