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Joe> I really do believe that you think that we are really stupid and naive here!
No doubts here.
First, deficits are caused by spending more money
than one has to spend. Even if you were right,
which, you are not, tax cuts do not cause deficits.
Politicians spending money are the cause.
Second, tax cuts - when properly applied - leave
more money in the hands of the economy where they
can go round again, spinning off more tax revenues.
Try this article :
Do Tax Cuts Increase Government Revenue?
http://www.forbes.com/sites/mikepatton/2012/10/15/do-tax-cuts-increase-government-revenue/
The following graph clearly reveals the answer. The red line represents the top marginal tax bracket while the blue line shows the total amount of Federal government revenue each year. There are two salient points here. First, as the graph illustrates, as tax rates declined, government revenue increased.
. . .
In conclusion, as JFK, Reagan, and George W. Bush understood, reducing taxes has a stimulative effect on economic activity which leads to an increase in government reciepts. You can’t argue with history!
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Zim.
Mad Poet Strikes Again. |
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