M.D. Rawlings
Classical Liberal
There has been a revenue problem since Reagan arbitrarily cut our taxes while raising spending. We have not recovered since.....nor have we learned
Nonsense. Reagan put the country right. Mostly stopped excessive growth in spending, and the Republican Congress of the 90s carried on his legacy. The result: the first surplus in decades, the beginning of paying off the debt. You're confounding the increased spending on the military with general spending. Initially the deficit went up in the face of this increased spending and an economy still lagging behind the reforms that addressed the stagflation of Keynesianism. But in just over two years the economy kicked in, full steam ahead, and so the greatest expansion of the Republic's economy began, lasting for nearly three decades. And what was happening during that same period? Revenue! More revenue than the government had ever realized before poured in.
Some of you will never get it. A small percentage rate of taxation levied against a large economic pie gives more revenue against real spending than a large percentage rate against a small economic pie. High rates of taxation shrink economies and, beyond a certain threshold, diminish the amount of revenue the government actually collects. Low rates of taxation grow economies and the influx of revenue.
We need to cut taxes even further, say, to 20% top bracket, 10% lower bracket. Stop taxing income twice altogether. End the inheritance tax, capital gains tax. We need to cut spending as well, for sure. But the only lasting solution for that, beyond cutting taxes, is tort reform, universal competition among healthcare insurers and providing for the private ownership of the funds derived from payroll taxes. In other words, you have to also prevent the government from spending the surplus of economic growth by way of expanding entitlements that the people should own and control.
Problem solved.
But lefty wants to control your life. You've bought into his lies about taxation and revenue. That's sad.
Federal revenue rose during and after Reagan's term. But spending rose much faster. Ergo the problem.
Historical Federal Receipt and Outlay Summary
Yes. Of course. Spending is the problem! That's my point exactly.
I was refuting the notion that lower rates of taxation is the problem. It's not. Never was. rightwinger's got that all wrong, completely wrong, way wrong, several lightyears off the reservation wrong. He doesn't grasp the economic realities of "higher rates-smaller pie vesus lower rates-bigger pie".
Yes spending increased, but beyond military spending not nearly at the rate it would have had lefty been fully in charge. And as a result of lower rates of taxation, the growth in revenues began to outpace the growth in spending, during the 90s especially, and eventually overtook it, coupled with real reductions in the growth of spending. The Republicans controlled the House.
That's my point. Raising taxes is not the solution.
Of course spending is the ultimate problem, particularly where entitlements are concerned. Lowering taxes is part of the fix, not the problem. The other piece of the puzzle is entitlement-program reform.
That's my argument in a nutshell. Right?
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