How Do Tax Cuts Help the Economy?

Among the questions that Doug Andrew regularly addresses each day on his 3 Dimensional Wealth YouTube channel is the question as to how tax cuts help the economy. In light of the upcoming election, Doug wants to highlight two basic philosophies regarding taxes.

There’s one general political philosophy that believes in big government and that believes that you fund big government programs by raising taxes. The other political philosophy, generally speaking, talks about smaller government, self reliance and letting states make most of the decisions. This philosophy also believes that if you need tax revenue for more essential things such as more school teachers or public safety, that the best way to generate tax revenue is raising the revenue that is being taxed.

This means that you can lower taxes and generate more tax revenue than by just raising taxes.


  • What should you be doing to protect your serious money from the prospects of higher taxes? There’s a high likelihood that taxes will be going up in the future, Doug explains how to mitigate this risk.
  • Why did Ronald Reagan believe that taxing people at too high a rate created disincentives to build and create new business? Doug recounts the effects of Reagan’s 1986 tax cuts and what we can learn from them.
  • What choices do politicians have when the economy is in a tailspin? Doug shares some historical examples of how they’ve responded in the past versus how some say they’d like to respond to our current tailspin.
  • How can lowering taxes end up creating more tax revenue than simply raising taxes can? Learn about what happened following 9/11 and how George W. Bush’s tax cuts were proven to have resulted in higher revenues.
  • What kind of choice is being offered by the candidates in the coming election regarding how they would like to pay for government programs? Doug explains the key difference in approaches and the likely results.
  • Why do so few politicians understand how the economy works and how might that affect your retirement savings? Learn how to position your nest egg so it’s not vulnerable to the politicians who wish to raise taxes.
  • And much, much more…

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