Supply Side Economic Tax Cuts

Tax deductions as a tactic of supply side economics: Stimulating the growth of an economy The purpose of this paper is to examine the use of government tax cuts, as one tactic of supply side economics. The pros and cons to supply side economics with reference to historical evidence will show that cutting taxes as prescribed by this plan will in fact stimulate economic growth. Does it work? The people of Ontario are going to …

…tax cuts allow for more consumer spending (consumer demand), individual household debt clearing, increased incentive for investors and skilled workers, and the creation of new jobs. When tax cuts are applied in balance with other supply side tactics, economic growth will result. As the National Post puts it when referring to the message that Alberta?s Premier, Mr. Campbell, is sending out to the other Premiers, ?gentlemen re-start your tax-cutting engines? (Race to the Top 2).