Will Mitt Romney's plan for cutting taxes work? Not if you believe history.
Such experiments were tried in the early 80's to less than stella results, the
anti-keynesian nature of this approach is doomed to failure from the start.
"The massive U.S. tax cuts between 1981 and 1984 provided something approximating a laboratory test of these alternative views. What happened? The private saving rate did not rise. Real interest rates soared. With fiscal stimulus offset by monetary contraction, real GNP growth was approximately unaffected; it grew at about the same rate as it had in the recent past."
Thanks to: Alan S. Blinder Professor of Economics at Princeton University