link here to article
When George W. Bush ran against Ronald Reagan for the GOP presidential nomination, he coined the voodoo economics phrase. It described his view of the Reagan plan to cut taxes in order to GROW federal tax revenue. Reagan won the nomination and the election despite his belief in Voodoo.
This of one of the zombie ideas that will not die. One of the problems with zombies is that they are the living dead and cannot be killed. The GOP still believes in voodoo economics in the US. They keep saying that cutting taxes will raise government revenue and its base lifts its tea cups in response. Since tea is even more popular in the UK than it is in America, voodoo economics has crossed the ocean. Politicians in the UK are making the same claim made by Reagan. They argue that cutting the VAT will stimulate the economy and increase tax revenue by more than the loss from the cut in taxes. This article in the Financial Times is intended to kill the zombie idea but we should remember that zombies cannot be killed.
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