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Debunking Liberal Myths About Tax Cuts and the Economy
Debunking Liberal Myths About Tax Cuts and the Economy
MYTH: We can only cut taxes if we cut spending by the same amount; otherwise, tax cuts will reduce revenue and cause deficits. FACT: Historically tax cuts have always paid for themselves. Federal revenue increased after the JFK tax cuts, after the Reagan tax cuts, after the Clinton tax cuts, and after the Bush tax cuts. The problem has not been taxes. The problem has been runaway spending. Total federal spending has not dropped once in over 40 years—not once: · Under LBJ revenue grew by 25%, but spending grew by 24%. · Under Reagan revenue grew by 15%, but spending grew by 25%. · Under Clinton revenue grew by 35%, but spending grew by 9%. · Under Bush Jr. revenue grew by 10%, but spending grew by 25%. If we would just stop spending so much money, we would have a surplus, taxes could be even lower than they are now, and we could start paying off the national debt. The problem isn’t that we aren’t being taxed enough. The problem is that the government is spending too much money. MYTH: Raising taxes in the 1990s caused the boom years of that decade. This proves that raising taxes leads to economic growth. FACT: Tax cuts, not tax hikes, caused the boom years of the 1990s. The economy grew modestly after Clinton raised taxes in 1993, but the economy grew even more after Clinton signed the tax cuts that were passed by the Republican-controlled Congress under Newt Gingrich’s leadership in 1997. |
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Debunking Liberal Myths About Tax Cuts and the Economy
On Dec 12, 1:47*pm, "PJ O'D" wrote:
Debunking Liberal Myths About Tax Cuts and the Economy MYTH: We can only cut taxes if we cut spending by the same amount; otherwise, tax cuts will reduce revenue and cause deficits. The claim is tax cuts without spending cuts will increase deficits because revenue will be greater without the tax cut than it would have been with the tax cut. Thus, you can't just look at whether revenue (eventually) goes up after a tax cut. Eventually, revenue goes up no matter what we do. It's revenue with versus without tax cuts that matters. Thus, your data below (even where true) does not support the claim that tax cuts pay for themselves. FACT: Historically tax cuts have always paid for themselves. *Federal revenue increased after the JFK tax cuts, after the Reagan tax cuts, after the Clinton tax cuts, and after the Bush tax cuts. After Reagan and Bush revenues fell for many years before eventually recovering. |
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Debunking Liberal Myths About Tax Cuts and the Economy
Debunking Liberal Myths About Tax Cuts and the Economy
Baron Montesquieu wrote that freedom and taxation are correlative. This explains the high tax Clinton economic boom. higher taxes = more freedom = high tax economic boom There is no free lunch on liberty. Freedom ain't free. Taxes are the price of liberty. Bret Cahill |
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Debunking Liberal Myths About Tax Cuts and the Economy
On Dec 12, 2:29*pm, Bret Cahill wrote:
higher taxes = more freedom = high tax economic boom Even though the highest marginal rates were higher in those years a myriad of deductions from gross income were allowable which are now disallowed creating a lower taxable income and effective rate of tax paid. |
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Debunking Liberal Myths About Tax Cuts and the Economy
On Dec 12, 2:52Â*pm, ПеаБраин wrote:
On Dec 12, 2:29Â*pm, Bret Cahill wrote: higher taxes = more freedom = high tax economic boom .. Even though the highest marginal rates were higher in those years a myriad of deductions from gross income were allowable which are now disallowed creating a lower taxable income and effective rate of tax paid. Tax Principles Monday, 03 December 2012 06:05 The Washington Post told readers: "both sides agree that as a principle, keeping tax rates low while eliminating deductions is better than increasing tax rates." Precisely the trend in US tax reform policy |
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Debunking Liberal Myths About Tax Cuts and the Economy
higher taxes = more freedom = high tax economic boom
. Even though the highest marginal rates were higher in those years a myriad of deductions from gross income were allowable which are now disallowed creating a lower taxable income and effective rate of tax paid. Tax Principles Monday, 03 December 2012 06:05 The Washington Post is right wing. There is little money in eliminating tax deductions because most were eliminated years ago. Anyway you dodged the issue: There is no free lunch on liberty. Freedom ain't free. Taxes are the price of liberty. Baron Montesquieu wrote that freedom and taxation are correlative. This explains the high tax Clinton economic boom. higher taxes = more freedom = high tax economic boom Bret Cahill |
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Debunking Liberal Myths About Tax Cuts and the Economy
On Dec 12, 8:50*pm, Bret Cahill wrote:
higher taxes = more freedom = high tax economic boom . Even though the highest marginal rates were higher in those years a myriad of deductions from gross income were allowable which are now disallowed creating a lower taxable income and effective rate of tax paid. .. Tax Principles Monday, 03 December 2012 06:05 The Washington Post .. is right wing. Really? Then the Washington Times must be Left Wing. LOL There is little money in eliminating tax deductions because most were eliminated years ago. In a trade off for lower rates which is exactly my point. : |
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Debunking Liberal Myths About Tax Cuts and the Economy
On Dec 12, 8:50*pm, Bret Cahill wrote:
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Debunking Liberal Myths About Tax Cuts and the Economy
On Dec 12, 11:47*am, "PJ O'D" wrote:
Debunking Liberal Myths About Tax Cuts and the Economy MYTH: We can only cut taxes if we cut spending by the same amount; otherwise, tax cuts will reduce revenue and cause deficits. FACT: Historically tax cuts have always paid for themselves. *Federal revenue increased after the JFK tax cuts, after the Reagan tax cuts, after the Clinton tax cuts, and after the Bush tax cuts. *The problem has not been taxes. *The problem has been runaway spending. *Total federal spending has not dropped once in over 40 years—not once: · * * *Under LBJ revenue grew by 25%, but spending grew by 24%. · * * *Under Reagan revenue grew by 15%, but spending grew by 25%.. · * * *Under Clinton revenue grew by 35%, but spending grew by 9%.. · * * *Under Bush Jr. revenue grew by 10%, but spending grew by 25%. If we would just stop spending so much money, we would have a surplus, taxes could be even lower than they are now, and we could start paying off the national debt. *The problem isn’t that we aren’t being taxed enough. *The problem is that the government is spending too much money. MYTH: Raising taxes in the 1990s caused the boom years of that decade. *This proves that raising taxes leads to economic growth. FACT: Tax cuts, not tax hikes, caused the boom years of the 1990s. *The economy grew modestly after Clinton raised taxes in 1993, but the economy grew even more after Clinton signed the tax cuts that were passed by the Republican-controlled Congress under Newt Gingrich’s leadership in 1997. There are several different things that can cause nominal government revenues to go up. Inflation and population growth are two examples. Government revenues have to be measured relative to GDP before they mean anything. Tax revenues for the years 2000 through 2011, as a percentage of GDP, are as follows. Note that we never have got back to the 20.6% level during Clinton's last year in office. 2000, 20.6 2001, 19.5 2002, 17.6 2003, 16.2 2004, 16.1 2005, 17.3 2006, 18.2 2007, 18.5 2008, 17.6 2009, 15.1 2010, 15.1 2011, 15.4 http://www.taxpolicycenter.org/taxfa....cfm?Docid=200 According to the following website, the cost of the Bush tax cuts so far is $2.8 trillion. http://www.washingtonpost.com/blogs/...FtbG_blog.html According to a report by the CBPP, "By themselves, in fact, the Bush tax cuts and the wars in Iraq and Afghanistan will account for almost half of the $18 trillion in debt that, under current policies, the nation will owe by 2019.[1]" http://www.cbpp.org/cms/index.cfm?fa=view&id=3849 |
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Debunking Liberal Myths About Tax Cuts and the Economy
On Dec 12, 6:27*pm, mg wrote:
On Dec 12, 11:47*am, "PJ O'D" wrote: Debunking Liberal Myths About Tax Cuts and the Economy MYTH: We can only cut taxes if we cut spending by the same amount; otherwise, tax cuts will reduce revenue and cause deficits. FACT: Historically tax cuts have always paid for themselves. *Federal revenue increased after the JFK tax cuts, after the Reagan tax cuts, after the Clinton tax cuts, and after the Bush tax cuts. *The problem has not been taxes. *The problem has been runaway spending. *Total federal spending has not dropped once in over 40 years—not once: · * * *Under LBJ revenue grew by 25%, but spending grew by 24%. · * * *Under Reagan revenue grew by 15%, but spending grew by 25%. · * * *Under Clinton revenue grew by 35%, but spending grew by 9%. · * * *Under Bush Jr. revenue grew by 10%, but spending grew by 25%. If we would just stop spending so much money, we would have a surplus, taxes could be even lower than they are now, and we could start paying off the national debt. *The problem isn’t that we aren’t being taxed enough. *The problem is that the government is spending too much money. MYTH: Raising taxes in the 1990s caused the boom years of that decade. *This proves that raising taxes leads to economic growth. FACT: Tax cuts, not tax hikes, caused the boom years of the 1990s. *The economy grew modestly after Clinton raised taxes in 1993, but the economy grew even more after Clinton signed the tax cuts that were passed by the Republican-controlled Congress under Newt Gingrich’s leadership in 1997. There are several different things that can cause nominal government revenues to go up. Inflation and population growth are two examples. Government revenues have to be measured relative to GDP before they mean anything. Tax revenues for the years 2000 through 2011, as a percentage of GDP, are as follows. Note that we never have got back to the 20.6% level during Clinton's last year in office. 2000, 20.6 2001, 19.5 2002, 17.6 2003, 16.2 2004, 16.1 2005, 17.3 2006, 18.2 2007, 18.5 2008, 17.6 2009, 15.1 2010, 15.1 2011, 15.4http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=200 According to the following website, the cost of the Bush tax cuts so far is $2.8 trillion.http://www.washingtonpost.com/blogs/...evisiting-the-... According to a report by the CBPP, "By themselves, in fact, the Bush tax cuts and the wars in Iraq and Afghanistan will account for almost half of the $18 trillion in debt that, under current policies, the nation will owe by 2019.[1]"http://www.cbpp.org/cms/index.cfm?fa=view&id=3849 According to your figures revenue as a percent of gdp was 20. 6% in 2000 and 17.6% in 2008. gdp was 9.8 tril in 2000 and 13.1 tril in 2008. this means revenue was 2.0 tril in 2000 and 2.3 tril in 2008. Since the exchecquer pays for stuff in dollars and not in % of gdp was he better off with the 2.0 tri under Clinton or the 2.3 tril under Bush? Was the private sector better off with its after tax residue of 7.8 tril under Clinton or 10.8 tril under Bush? You just might need a course in remedial arithmetic |
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