Count TEK2day in the group that is not in favor of quantitative easing after having lived through the 2008 QE period. We favor a reduction of federal corporate and personal income tax rates. In fact, take income tax rates to zero. Institute a “pay-as-you-go” national Sales tax on finished goods and services for both corporations and individuals.
In an effort to stimulate the economy in the face of COVID-19 we 100% disagree with U.S. economists who believe that consumers will not spend incremental income gained from income tax cuts. We are a nation of spenders – not savers. An informal survey of my extended family shows spending over the past few days on: digital movie rentals, toys, sports equipment, take out food and online purchases of basic household items. Sure, hotels, airlines and high-end restaurants will suffer. However, other elements of the consumer economy march on.
Government of course would prefer to take their tax revenue “off the top” versus on the back-end. Another example of the tail wagging the dog.
Here is a breakdown of tax revenue by year by source as published by the Tax Policy Center: Tax Revenue Table