Shrinking Deficit

Discussion in 'Economy' started by MtnBiker, Jan 15, 2005.

  1. MtnBiker
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    MtnBiker Senior Member

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    Full Article
     
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  2. no1tovote4
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    no1tovote4 VIP Member

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    They won't report this because it will go against all that great economic thinking of our time that taxation is a zero sum game. If you drop taxes you collect less is an assertion of this particular logical fallacy, and this directly flies in the face of that.

    Well this and all that great economy we had in the 90s.
     
  3. freeandfun1
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    freeandfun1 VIP Member

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    I've pointed this out to Sage, but she always says I MUST be wrong. I wonder what her response will be to this? Liberals never want to admit THEY are wrong.
     
  4. MtnBiker
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    MtnBiker Senior Member

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    I know what you mean. Just as a reminder this increase in tax revenue that is driving down the deficit supports the Laffer Curve theory.

    http://www.usmessageboard.com/forums/showpost.php?p=7478&postcount=6

    [​IMG]
     
  5. KarlMarx
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    KarlMarx Senior Member

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    As has been said about a million times on this board (not that I'm exaggerating), the so called "Clinton Surplus" of the 1990s was really the "1994 Republican Congress Surplus" of the 1990s. Why? Because, the 1994 Congress voted to lower the tax on capital gains, which encouraged the buying and selling of stock and bonds. As a result, the net revenues from taxes actually INCREASED and drove the deficit down.

    So, it stands to reason that the deficit is now going down as a result of tax cuts.

    BTW.... Reagan's tax cuts and increased defense spending is often blamed for the deficits of the 1980s. Not true. The Reagan tax cuts helped to increase tax revenues by an amount that EXCEEDED the increase in defense spending. The actual culprits were the increased social spending by the then Democratically controlled Congress.

    BTW#2 ... if liberals are actually concerned about government spending, let's say "OK, you're right" and point out that Social Security, Medicare and Social Programs are the biggest items on the Federal Budget, we'll start there.
     
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  6. freeandfun1
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    freeandfun1 VIP Member

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    Well, Sagegirl would tell you to post links to support your claims and then when you do, ignore them.

    (I have experience) :laugh:
     
  7. KarlMarx
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    KarlMarx Senior Member

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    Bring 'er on!!!!!!!

    I'll even find the "missing link"!!!!! :):):)
     
  8. nosarcasm
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    nosarcasm Active Member

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    the laffer curve still leaves the question what to tax, at what minimum level
    to have the greatest economic growth, lowest possible taxes while reaping
    a good tax return.

    In general the recents changes have taken away of taxes
    on wealth and increased the dependence on payroll taxes.
     

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