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SURPLUSES DON'T MAKE FOR LOWER TAXES (int'l edition)I disagree with Gary Becker, who says that budget surpluses leave room for lower taxes (''Don't look for tax cuts from this budget surplus,'' Economic Viewpoint, Sept. 14). Budget surplus means that the government intake exceeds spending. The emergence of a surplus causes a contraction of the money rate of growth and in this regard it produces the same effect as any tight monetary policy would. A budget surplus, i.e., a monetary surplus, doesn't automatically make room for lower taxes. Only if real government outlays are curtailed can the tax be lowered.
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Updated Sept. 24, 1998 by bwwebmaster
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