Thursday, April 26, 2007
Tax Cuts = More Tax Revenue???
How can this be??? Wait, do you mean we can have tax cuts and yet have a tax revenue INCREASE again? Darn it...that's not how it is supposed to work is it? Must be some more Repub voodoo economics! Also in case you missed it b/c you only watch the MSM, the DOW blew past 13,000 yesterday as well! News Alert!!! The economy is strong and still growing!!! Yet, what do the Libs do in their first budget, they are trying to give us the biggest tax increase in the history of the US.
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8 comments:
I know, this Bush economy just sucks doesn't it???? Not!!!! Although you would never know it by how the Drive By Media talks.
CT,
WSJ is reporting that the US economy slowed to a 1.3% rate of growth, its weakest pace in four years, & inflation is accelerating. The dollar has reached all-time lows against the euro.
Sometimes I wonder if the Dow is continuing to reach new heights because of the weakening of the dollar?
They are blaming the housing slump, but I think that Congress & the President's failure to reign in spending is to blame as well...
However, I do agree w/ you CT that increasing taxes may increase revenue in the short-term, but will have a negative impact in the long-term.
I found this on WSJ: WashWire blog
"Economists predict increase of as much as 8% to $340 billion, from $315 billion a year ago. That could nudge fiscal 2007 deficit below current projection of $244 billion.
Much of the rise is coming from the wealthy through taxes on investments and other income, suggesting income-inequality trend continues to grow. But the poll shows high-income Americans want political change nonetheless; by 41%-39%, Americans earning more than $75,000 want a Democrat to win the White House next year."
JoseNew...granted it slowed and I absolutely agree it could have been even stronger were it not for the out of control spending...but it still grew. After years and years of the media ignoring or lying about the truth just the fact that it is still growing is miraculous. Also, the slowing in growth may also be a fear by investors now that the Dem,s are in control and have already begun to try and raise taxes.
I'll have to take issue that tax cuts don't work long term. First we have no example to go off of b/c after the three biggest tax cuts that all brought strong growth, big tax increases were introduced. Had the tax increases not happened would they keep growing...we don't know, but we do know the economy slows after tax increases and grows after tax cuts.
ct,
i was saying that tax INCREASES may increase revenues temporarily, but they will have a negative impact on revenues in the long-term. As you state, history bears this out.
Hence, I agree with you that tax cuts will have a positive impact on tax revenues...
Unfortunately, this does not solve our problem of out-of-control spending and over promising entitlement programs
oops...sorry...misread the post =)
We need tax cuts along with reduced spending. there are too many "politicians" making deals and spending money, most dems but also republicans.
CC...very true
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