Tax Receipts Exceed Treasury Predictions

Discussion in 'Economy' started by Fmr jarhead, May 5, 2005.

  1. Fmr jarhead
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    Fmr jarhead Senior Member

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    Where are all the boo birds, now.....seems like a tax cut does increase revenue, doesn't it?

     
  2. Merlin1047
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    Merlin1047 Senior Member

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    I don't understand why this concept appears to be lost on the left. If you tax people LESS, they save and spend MORE. As a result, the economy is stimulated and the net result is an INCREASE in tax revenues.

    Reagan proved that beyond a doubt, but they're still calling it "vodoo economics". The left still sees taxes as a means of income redistribution and as funding for their idiotic social engineering and they're proud of themselves every time they dip their greedy fingers in our wallets. Go figure.
     
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  3. Huckleburry
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    Huckleburry Member

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    Nice post Merlin,
    I am buried in work right now so I can't devote too much time to an argument. I would like to point out though that, in the short run (1-3 years), the tax rate effects consumption not savings. Savings is a function of the marginal propensity to consume, not the tax rate. Also, many economists do not view our economic policies as existing in a bubble, rather they view us as the economic hegemon and believe that we have a responsibility to preserve stability. In the long run their view has thus far been correct, we have more to gain from further liberalization and our continued position as the global hegemon than we do from short term resusuitative efforts and the effects they bestow. Many objected to Regan's policies (as they do to Bush's) because they saw it as a destabalizing force in the global economy. I was quite surprised to see the numbers though and I am looking forward to full disclouser of the books.
    Huck
     

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