Cut Taxes for the Right Reasons

Let me be clear: I wholeheartedly agree that it makes much more sense for the government to cut taxes, rather than spend money, in order to improve the economy. But what I have been arguing is that the reason for this superiority is not, "Let taxpayers spend money and create jobs rather than the politicians." But if job creation from spending is a bad argument, what are the valid reasons for supporting tax cuts?

First is the simple moral argument. That money was earned by the taxpayers, and so prima facie it is always a good idea to take (i.e., steal) less from them.

Second there is an incentive argument. Especially if the tax reduction comes in the form of lower marginal rates (rather than lump-sum rebates), then individuals have the incentive to produce more. Notice that this is the exact opposite of the standard Keynesian analysis. In other words, the pragmatic argument for tax cuts isn't to give consumers more money to go buy stuff, but rather it's to give producers the incentive to go make stuff.

Tax cuts return stolen loot to the rightful owners. Government, an honest government (I know, I know), would have to cut spending accordingly in order to keep the budget balanced.