Auerbach (2002) estimates that a deficit-financed tax cut
similar in structure to the 2001 tax cut (which originally
was slated to last only till 2010) will reduce the long-term
size of the economy if is financed by tax rate increases
after it expires. Even if the deficits are eventually offset
partially or wholly by reductions in federal outlays
(government consumption in the model), the tax cuts
would either reduce the size of the per-capita stock or
slightly raise it by 0.5 percent in the long-term.