How much did they raise taxes?

Reader comment on: Job Creation
in response to reader comment: Imagine if we hadn't approved the tax cuts

Submitted by ben (United States), Apr 1, 2011 14:59

let's say for the sake of argument that the tax increases raised three times the revenue as the spending cuts. If this were the case, I might be forced to put aside my ideological views and concede that tax increases were the root cause of the lower than expected performance of England's austerity plan. However, the facts are the opposite. The plan cut spending by 128 billion to close a shortfall of 172 billion, meaning that tax increases accounted for 44 billion. This means that spending cuts accounted for three times as much of the "austerity" as did tax increases. Once again, the facts are on the side of Krugman and the Keynesians, not the supply-siders.

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