Huge Drop In Deficit Stronger Than Expected

[ReillyT]

Did I say you?

I am saying what the Dems say evertime good economic news comes in. Nothing is good about America while Bush is President

I am a Democrat, so I guess you did refer to me.

 

[red states rule]

They apparently did work for Reagan. I have no idea about JFK.

The idea that any level of tax is always good seems a bit simplistic. To some degree, the government needs funds to operate, and a very high deficit indicates that the government does not currently have sufficient funds. (By the way, I am not even sure that I have a problem with the size of our deficit, but obviously, at some point, a deficit could be too large)

Tax cuts should stimulate spending, which should result in higher corporate revenues, and so on, and so on. However, not all tax cuts are equal. Some types are better than others at stimulating spending, and this is without even getting into issues of equity among taxpayers.

Under JFK the the top rate was 90%

Under Pres Peanut Carter it was 70%

The deficit has ben dropping for the last 5 years - and the Dems dismissed it as a nothing event

 

[ReillyT]

Under JFK the the top rate was 90%

Under Pres Peanut Carter it was 70%

The deficit has ben dropping for the last 5 years - and the Dems dismissed it as a nothing event

As I pointed out, the budget deficit has not been dropping for five years, it has only been dropping since 2004. That is a good thing, but one should also take into account that it is still a pretty big deficit.

You can find the numbers here.

http://data.bls.gov/cgi-bin/surveymost

 

[Angel Heart]

The concept of what a normal unemployment rate is changed in the late 90s when we were able to maintain an unemployment rate in the high 3s/ low 4s without inflation. Prior to the 90s, this wasn't though possible.

I am not saying, by any means, that the unemployment rate right now is bad. I am merely pointing out that the unemployment rate was actually lower during the latter part of the Clinton presidency, and began rising in March of the year that Bush became president. As a result, I don't know how strong the claim is that the tax cuts are the reason for our low unemployment.

Try not to take every disagreement I have with your assertions as me having a "ragged" on Bush.

Sorry for the bite.

I actually agree with you. I do think the tax cuts have help. ON the personal level it definitely has. The child tax credit has helped a LOT. We are at the low end of the EIC chats. But with that we still get a healthy return. Way more than I put in.

 

[red states rule]

As I pointed out, the budget deficit has not been dropping for five years, it has only been dropping since 2004. That is a good thing, but one should also take into account that it is still a pretty big deficit.

You can find the numbers here.

http://data.bls.gov/cgi-bin/surveymost

Your link came up blank

Once the tax cuts had time to work, the deficit started to drop

http://www.uuforum.org/deficit.htm

 

[onedomino]

Yet, how many times over have we shown them it works.

Stock market is at all time highs, the unemployment rate is low, the deficit is lower, yet they don't see. They tend to be the blind leading the blind.

Yes, but regardless we need to balance the budget. During the Bush presidency the National Debt has increased by $3 trillion. "A billion here and a billion there, and pretty soon you're talking real money."

 

[red states rule]

Yes, but regardless we need to balance the budget. During the Bush presidency the National Debt has increased by $3 trillion. "A billion here and a billion there, and pretty soon you're talking real money."

The deficit has been dropping for the last 4 years

Pres Bush kept his promise to cut the deficit in half before he leaves office - it happened last year

 

[ReillyT]

Your link came up blank

Once the tax cuts had time to work, the deficit started to drop

http://www.uuforum.org/deficit.htm

That kind of begs the question of how long tax cuts take to work. The deficit only started decreasing (from an already high and increased leve) in 2004, while the tax cuts were enacted in 2001. In the intervening period, the deficit grew, and grew a lot. Of course, a lot of this may have to do with other factors, but it seems hard to make a strong case (based on looking at the budget deficit alone) that the tax cuts are not to blame for the increasing deficit to the point we are at now, but that the tax cuts are the reason for the reduction from $400B to $205B right now.

It would seem just as logical to say that the tax cuts are responsible for the increased deficit and other things account for the subsequent reduciton, as to argue the opposite. Either argument seems to lack some support based on the deficit numbers alone.

By the way, sorry for the cite. I linked to a specific page, but I think you have to go through the main site. Try the following link and click the historical budget data option.

http://www.cbo.gov/

 

[red states rule]

That kind of begs the question of how long tax cuts take to work. The deficit only started decreasing (from an already high and increased leve) in 2004, while the tax cuts were enacted in 2001. In the intervening period, the deficit grew, and grew a lot. Of course, a lot of this may have to do with other factors, but it seems hard to make a strong case (based on looking at the budget deficit alone) that the tax cuts are not to blame for the increasing deficit to the point we are at now, but that the tax cuts are the reason for the reduction from $400B to $205B right now.

It would seem just as logical to say that the tax cuts are responsible for the increased deficit and other things account for the subsequent reduciton, as to argue the opposite. Either argument seems to lack some support based on the deficit numbers alone.

By the way, sorry for the cite. I linked to a specific page, but I think you have to go through the main site. Try the following link and click the historical budget data option.

http://www.cbo.gov/

It took time for the tax cuts to work through the economy, and 9-11 cost the US economy over $1 trillion

Tax cuts have givien us a great and growing economy

 

[ReillyT]

The deficit has been dropping for the last 4 years

Quit saying that. It is not true. http://www.cbo.gov/

Pres Bush kept his promise to cut the deficit in half before he leaves office - it happened last year

It depends on what you mean by cut in half. If what you mean is to cut in half from the highest point reached in his presidency, then he has already succeeded. However, if you mean cut in half from the first year after he enacted the tax cuts (2002, deficit = $157B), then he has a long way to go. All of this is to say nothing of the fact that when he came into office, there was a surplus. Of course, there have been intervening factors - war.

 

[ReillyT]

Tax cuts have givien us a great and growing economy

Maybe, but I don't think that there is strong proof that these tax cuts are responsible for that, but not equally responsible for the deficit.

 

[red states rule]

Maybe, but I don't think that there is strong proof that these tax cuts are responsible for that, but not equally responsible for the deficit.

History shows tax cuts work - and we need more of them to get the money out of DC

 

[Angel Heart]

Yes, but regardless we need to balance the budget. During the Bush presidency the National Debt has increased by $3 trillion. "A billion here and a billion there, and pretty soon you're talking real money."

http://video.google.com/videoplay?docid=-9050474362583451279

Unless we change how we run money, we need to go into debt to keep the economy going.

Oh and no Bush didn't set it up that way.

 

[red states rule]

http://video.google.com/videoplay?docid=-9050474362583451279

Unless we change how we run money, we need to go into debt to keep the economy going.

Oh and no Bush didn't set it up that way.

We could start to cut the debt by cutting spending

Dems are increasing the pork and the spending - which is why they need to increase our taxes

 

[Angel Heart]

Watch the video... It shocked me. I think it comes down to how we bank. The video explains how we 'make' money.