IF the business slump continues, taxes will be cut. But how much and when? Some economists argue that the U.S. cannot afford the $6 billion to $8 billion yearly loss to the Government of the tax-cut packages so far proposed, especially since the Government expects to run into a $4.5 billion deficit in fiscal 1959 without a cut. The answer of tax-cutters is that a cut eventually generates new revenue by stimulating economic activity; for example, the Government lost some $5 billion yearly in revenue when it cut taxes in 1954, but within a year, as the tax cut helped push...
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