Business psychology is not a political liberal’s strong suit. From time to time the Obama Administration, for example, has offered tax cuts when under pressure to do so. But only as temporary measures.
Such temporary, half-hearted tax reductions have little effect because business people plan for years ahead. Temporary cuts are not only meaningless, they are a trap.
For instance, a cut in payroll taxes for a short time is another version of failed Keynesian economics. It adds some money to the economy for a time and sounds good because it appears it will add to consumer spending. But experience shows it has no business multiplier effect for producing jobs. ( See the Earl J Weinreb NewsHole® comments.)
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