Tax Reduction and Threat of Recession
Current Debate About Anti-Recession Tax Cut
Advocacy of immediate reductions in individual and Corporation income taxes to reverse the current slow-down in business activity has given rise to wide discussion of federal fiscal and budget policies. The government in-curred a $6.3 billion deficit in the fiscal year which ended June 30.1 A tax cut large enough to bring about the de-sired economic effects would produce a still bigger deficit in fiscal 1963. The only way to hold down that deficit would be to slash expenditures, but drastic cuts in spend-ing might offset the economic stimulus sought from a tax cut.
Main Question in Debate on Immediate Tax Cut
The main question, therefore, is whether a deliberately incurred deficit of substantial proportions is ...