The Tax Cut Myth

Discussion in 'Economy' started by JeffWartman, May 19, 2007.

  1. JeffWartman
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    JeffWartman Senior Member

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    This is one of the best opinion pieces I've ever read...it exposes the fake Conservatives (Republicans) for what they are. Republicans are big government. We need small government.

    http://www.realclearpolitics.com/articles/2007/05/the_taxcut_myth.html
     
  2. red states rule
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    red states rule Senior Member

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    Oh yea, tax cuts do not work

    record tax revenues flowing into Washington

    eight straight weeks of gains on Wall Street - and anopther record close this past Friday

    Unemployment at 4.5%

    Inflation in check

    Low interest rates

    Moderate economic growth

    IF this is what it means by tax cuts do not work - GIVE ME MORE!!!!!!!!!!!!!
     
  3. red states rule
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    red states rule Senior Member

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    More Jobs = More Revenue =Tax Cuts Work
    April 13, 2007 01:00 PM EST



    On April 7th I read a wonderful report by Patrice Hill of the Washington Times entitled: “Jobless rate falls to a five-year low” which was chock full of numbers and optimism for the national economic outlook. I would be interested to know if the number of ambulance calls for coronary distress among liberal democrats reached double-digits that day.

    Anyway, Ms. Hill’s report began: “The unemployment rate fell to a five-year low of 4.4 percent as job growth picked up to 180,000 last month — a show of strength that bolstered hopes that the economy will endure the turmoil in the housing and mortgage markets without major harm.”

    Please note the terminology “a show of strength”.

    Again from the report: “In another sign of unexpected strength, hiring in January and February was 32,000 more than previously reported.”

    So as in many of the previous jobs reports the numbers have actually been understated. The “unexpected strength” in national employment continues to baffle the liberals who still manage to find tarnish on economic silver linings. Even this glowing report from Ms. Hill managed to dent the good news with the following: “But the overall employment gains in March masked the loss of another 16,000 manufacturing jobs — the ninth straight month of shed factory jobs — as well as a rare cut in business services jobs for accountants and temporary employees.”

    Ah! There is always the “but”, but this “but” has a “but” as well. The “loss” of all these manufacturing jobs still did not impact the unemployment rate. The unemployment rate continued to fall despite the loss of 16,000 manufacturing jobs. That means more people were employed and more tax revenue was being gained through the increased payrolls.

    It was only three or so weeks ago that forecasters were predicting dire consequences for the American economy because of mortgage failures and a possible “…recession from the sub prime mortgage problem and the housing slowdown…” but here is another “but” from the article: "The latest job numbers show an economy that is effectively absorbing the blows from the residential and mortgage sectors," said Bernard Baumohl, managing director of the Economic Outlook Group, an economic advisory firm in Princeton Junction, N.J.”

    We are talking of job growth that has extended over a five year period since the Bush tax cuts first began having the desired effect on the national economy. Again from the report: “Job growth averaged a "respectable" 152,000 a month in the first quarter, which is down from last year's 188,500 pace but consistent with the more subdued growth of the economy, [Baumohl] said.”

    Not only are job being created at a “consistent” pace but according to the report: “Wages continued to grow moderately, bringing the yearly gain for average hourly workers to 4 percent. Both the wage gains and the unemployment rate are at levels attained at the end of the last expansion in 2001…” meaning there is growth in just about every sector of the economy and that while fewer higher wage jobs may be produced, the larger increase in lower wage jobs more than offsets that situation and the lower wage jobs still saw “moderate” wage gains. Tax revenue is still increasing and deficits are slowly being adjusted down from the increases in tax revenue.

    Another optimistic quote from the report: “The economic outlook is quite bright, and the probability of recession is still negligible" as long as consumers continue to gain jobs and income, Mr. Baumohl said.”

    Liberal economic naysayer’s got another dose of reality against their gloom and doom prognostications. From the report: “David Wyss, chief economist with Standard & Poor's, said the strength in construction and other areas was a "major surprise" and indicates that the slowdown in hiring during January and February was more of an aberration because of cold weather than previously thought. "The strength in construction, in particular, is highly encouraging" in light of an 18 percent drop in home building and a loss of 134,000 home construction jobs in the last year, he said.” (There’s that word “strength” again!)

    Patrice Hill’s report cites: “Lawrence Kudlow of Kudlow & Co. [who] called the jobs report a "blockbuster" that "puts the lie to those perma-bear pessimists who keep predicting recession from the sub prime mortgage problem and the housing slowdown. The rate of economic growth ebbs and flows over long expansion periods such as this one," which is in its sixth year of growth, he said. "In the absence of major policy blunders" like big tax increases, the unleashing of inflation and protectionist forces or overregulation, "the economic pie keeps expanding,"

    And after all the talk from democrats who believe increasing taxes is the path to prosperity the word “blunder” is a stark contradiction just waiting for a democrat administration. A sharp picture of the Carter Presidency comes to memory!

    Finally from Ms. Hill’s report: “Peter Morici, business professor at the University of Maryland, said the job boomlet has been better for college-educated and skilled people than for high school graduates and dropouts, though all groups have seen their unemployment rates drop in the past year.”

    The point being that there are jobs for everyone who wants to work. The economy is in continued growth. Jobs are being created every month. Some months have fewer jobs created than others but still there is growth. Wages are increasing, perhaps slowly, but increasing nonetheless. More jobs mean more tax revenue without having to increase tax rates and if tax cuts remain a permanent fixture in the American economy the possibility of continued economic growth remains.

    http://www.theconservativevoice.com/article/24240.html
     
  4. JeffWartman
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    JeffWartman Senior Member

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    Umm, did you read the article? It states clearly that tax cuts bring in revenue. Please read and understand the article before you respond.
     
  5. red states rule
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    red states rule Senior Member

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    and tax cuts cause economic growth and more then pay for themselfs
     
  6. JeffWartman
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    JeffWartman Senior Member

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    Which is what the article states. That is not the point of the article. Can you address the points of the article?
     
  7. red states rule
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    red states rule Senior Member

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    The deficit is at a 5 year low - and dropping
     
  8. JeffWartman
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    JeffWartman Senior Member

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    The fact that you would use the word "themselfs" shows you are either very drunk or very uneducated. Which is it?
     
  9. red states rule
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    red states rule Senior Member

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    WASHINGTON - The federal deficit fell to a four-year low in the budget year that just ended, a result President George W. Bush pointed to Wednesday in claiming Republicans are better stewards of the economy than are Democrats.

    The administration said the deficit dropped to $247.7 billion — welcome news for Republicans struggling to keep control of Congress. Bush boasted he had made good on a 2004 campaign promise to cut the deficit in half over five years.

    “These budget numbers are proof that pro-growth economic policies work,” Bush said.

    http://www.msnbc.msn.com/id/15220076/
     
  10. JeffWartman
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    JeffWartman Senior Member

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    THE ARTICLE AGREES. CAN YOU ADDRESS THE REAL POINTS OF THE ARTICLE?
     

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