Why tax cuts aren't helpful until the government stops spending our money.

Now, what does it mean to lower taxes? It means that Americans should have greater access to the pool of real funding. The only way this can be made possible is if government access to the pool is reduced. After all, in similarity to all other activities, government activities must also be funded.

Thus when government decides to promote a particular activity, this means that the government will supply various individuals that are engaged in this activity with money. The received money in turn will permit individuals in that activity to access the pool of real funding.

Since government is not a real wealth generator it relies on its sources of funding from the private sector. This in turn means that the more government spends the less real funding will be available for the wealth generating private sector. Obviously this will impede the creation of real wealth and impoverish the economy as a whole. Observe that if government could generate real wealth, it wouldn't need to tax the private sector.

The effective level of tax then is dictated by government outlays. The more government plans to spend the more real funding it will divert from the wealth generating private sector. The mode of diversion of real wealth from the private sector is, however, of secondary importance. What matters is that real funding is diverted. The method of taking real funding can be through direct taxes or indirect taxes and by means of monetary printing.