1. It curtails economic freedom of people to use the money the have earned in the way they want to spend. Individual spending her/his money is likely to spend it more productively than the government. If you want to know how, ask this question in four situations given below: In what situation is the spender going to collect more relevant information before choosing where and how much to spend money?
A: When spending one's own money on one's own (includes family's) needs?
B: When spending one's own money on others (say donation or acting as philanthrop)?
C: When spending other's money on one's own needs (don't know who could do it but perhaps you will know)?
D: When spending other's money on others' needs (tax collected spent by government)?
The D situation provides least Incentive for the spender to collect relevant Information to make rational spending decisions as Interests of spender are not likely to align with that of 'real spender' i.e. tax payer. So this three 'I's explanation attributed to Milton Friedman helps us argue that you should leave minimum money with the government to allocated through political markets. Hence CUT TAXES.
