The Tax Cut Myth

[Toro]

Revenues user Reagan DOUBLED in eight years

Right now, tax revenues are at record levels and increasing

Libs think raising taxes increases revenues - but the opposite is true

If you want people to invest, business to expand, and people to start their own business - you let them keep more of their own money

First, revenues did not double. They went from $600 billion to $1 trillion.

But that's partly because Reagan raised taxes three times.

However, you would expect tax revenues to rise because the economy was rising. If you cut taxes 10%, and revenues go from $100 to $90, if the economy is growing at its nominal average rate of 6% per year, in eight years, your revenue will be $142, or 42% higher than it was before you cut taxes simply because of the natural growth rate of the economy. Revenues would have been higher had taxes not been cut.

Of course, deficits were higher under Reagan, something the Laughter Curve proponents seem to forget.

Remember that the real economy grew about 4% per year in the 1960s during one of the greatest expansions in government spending in US history. And higher taxes didn't seem to slow the economy then.

 

[Toro]

So you want to go back to the days of higher taxes with a top rate of 70% as it was under Pres Peanut Carter?

No.

Lower taxes generally are better.

But its like the GOP have forgotten everything they ever knew about accounting. You have to look at both sides of the balance sheet. If taxes are to go down, so must spending. Yet, that doesn't happen under the Republicans. Didn't happen under Reagan. Didn't happen under Bush.

The so-called "supply-siders" are merely Keynesians in drag.

 

[JeffWartman]

and for about the fifth time in this thread, I have said it is time for more tax cuts

You do understand that tax cuts only increase revenues up to a point, then start decreasing revenue, right?

 

[JeffWartman]

Discretionary non-defense spending rose at a faster pace under the previous 6 years of Bush - including the 4 when the GOP controlled both chambers - than it did under Slick Willie.

Its a joke to think that the Republicans are the party of fiscal responsibility.

Exactly. I've been trying to tell him that.

The Republicans are big government.

If you vote Republican, you are big government.

RSR supports big government.

 

[Bern80]

No, I want to go back to the days of the budget surplus under Clinton by letting the current tax cuts expire.

I think we should cut funding, not increase it.

The idea is to get government to spend less money, not more.

 

[Bern80]

Exactly. I've been trying to tell him that.

The Republicans are big government.

If you vote Republican, you are big government.

RSR supports big government.

Nice causality link, not. Both parties spend an exhorbatant amount of many on their little pet projects, but dems are the only ones saying outright we need more of your money to spend.

 

[Truthmatters]

Democrats have a better record than Rs at getting the dificit under control.

Them is just the facts

 

[JeffWartman]

Nice causality link, not. Both parties spend an exhorbatant amount of many on their little pet projects, but dems are the only ones saying outright we need more of your money to spend.

And the Republicans lie to you by telling you they want to cut spending then increase spending just as much as Democrats...which is worse.

 

[Bern80]

Democrats have a better record than Rs at getting the dificit under control.

Them is just the facts

As I mentioned in another thread, or maybe even earlier in this one (I can't remember) a budget deficit really isn't that big deal.

as for your 'facts'...the only thing you have proven is that you are a mediocre at best spin man.

 

[Bern80]

And the Republicans lie to you by telling you they want to cut spending then increase spending just as much as Democrats...which is worse.

As I said I'm really not a fan of either party when it comes to their spending habits. but to answer the question I would have to say I am more annoyed with dem spending (again that is in no way an endorsement of rep spending). I dislike dem spending mainly because of the mindset that comes with it that the governement knows what's best for you and we're going to create all these programs to essentially run your life for you.

 

[Truthmatters]

Benie you think yourself so wise yet say nothing with any wisdom in it.

You seem to like massive spending coupled with Tax cuts for the wealthy.

I sure am glad Im not your accountant.

 

[Hamiltonian]

As I said I'm really not a fan of either party when it comes to their spending habits. but to answer the question I would have to say I am more annoyed with dem spending (again that is in no way an endorsement of rep spending). I dislike dem spending mainly because of the mindset that comes with it that the governement knows what's best for you and we're going to create all these programs to essentially run your life for you.

What I think is the best combination is actually a Republican Congress with a Democratic presidency. That seems to keep spending for both parties in check. Reps won't pass all of the social programs, and Dems won't pass all of the corporate welfare and defense spending.

 

[JeffWartman]

As I said I'm really not a fan of either party when it comes to their spending habits. but to answer the question I would have to say I am more annoyed with dem spending (again that is in no way an endorsement of rep spending). I dislike dem spending mainly because of the mindset that comes with it that the governement knows what's best for you and we're going to create all these programs to essentially run your life for you.

At least the Democrats are honest about stealing your money...the Republicans pretend they don't do it, then once they get elected they spend it just as worse as the Democrats do.

You can't be in favor of limited government and support the Republican Party. It just doesn't jive.

 

[Truthmatters]

The best results we have had in years is when the Dem congress and Bill Clinton passed the 1993 budget deficit act.

They did this without one single R vote.

Gore had to come to congress ad vote to break the tie.

The GAO and the CBO have credited this bill with the majority of the surpluses of the 1990s.

 

[Bern80]

You seem to like massive spending coupled with Tax cuts for the wealthy.

I sure am glad Im not your accountant.

And as I have said countless times before your assumptions are what are going to get you into trouble. You can't even seem to read. How exactley from my posts did you infer that I am for spending? In fact I said 'both sides spend and exhorbatant amount of money". Are you blind?

My credit score is 743. What's yours?

 

[Bern80]

At least the Democrats are honest about stealing your money...the Republicans pretend they don't do it, then once they get elected they spend it just as worse as the Democrats do.

You can't be in favor of limited government and support the Republican Party. It just doesn't jive.

Meaning you can be for a Dem congress and limited spending?

 

[JeffWartman]

Meaning you can be for a Dem congress and limited spending?

LOL, come on now. This isn't that hard.

You can't be for either major party and be for limited spending.

I was making a moral judgment -- both parties tax and spend, but the Democrats are honest about wanting to steal your money while the Republicans hide behind a pseudo-conservative cloak, but in the end want your money just as bad as the Democrats do...

 

[Truthmatters]

And as I have said countless times before your assumptions are what are going to get you into trouble. You can't even seem to read. How exactley from my posts did you infer that I am for spending? In fact I said 'both sides spend and exhorbatant amount of money". Are you blind?

My credit score is 743. What's yours?

I dont need to know my credit score ,I dont need to borrow money, I have money.

 

[Bern80]

Benie you think yourself so wise yet say nothing with any wisdom in it.

At the very least that makes two of us. I haven't seen a shred of wisdom in any of your posts. You use the same junk science for you statement of the tax cut myth that libs use for global warming. You took two things happening at this same time and made the leap that one must have caused the other with n other evidence than that they occurred at the same time.

Usually when peolpe assume things they have some small basis for it, but you don't even have that. You just make shit up. And your tone comes off as far more righteous and elitist than mine.

 

[JeffWartman]

I dont need to know my credit score ,I dont need to borrow money, I have money.

You have hundreds of thousands of dollars laying around to buy a house?

Wow.