However, they disagree on tactics in two ways. First, there is disagreement over which taxes should be targeted first. Second, there is argument over whether taxes can be cut immediately or whether this should be postponed until commensurate spending cuts can be negotiated. The strongest case belongs to those who say that the priority should be to cut federal and state income taxes and that this should be done even if spending cuts are not imminent. Consider each reason in turn.
Income taxes are direct levies on productivity, and thus reduce prosperity more than other taxes do.
Second, people have incentives to avoid income taxes by reporting less income, thus relegating much economic activity to black markets for otherwise legal goods and services. One problem with black market transactions is that they occur outside of the framework of legal and enforceable contracts and thus are riskier and less likely to take place. Another problem is that participants in black markets become accustomed to disregarding laws, making good laws more difficult to enforce. Third, in the modern world people can avoid income taxes by moving their operations away from the taxing authority. Providing incentives for people to take their wealth-producing activities elsewhere is bad policy.