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Re: The 'Real' Tax Rates on Top Earners 

By: oldCADuser in FFFT | Recommend this post (4)
Wed, 12 Feb 14 7:09 AM | 95 view(s)
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Msg. 61065 of 65535
(This msg. is a reply to 61057 by Zimbler0)

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"...deficits are caused by spending more money than one has to spend."

You mean when you lower taxes and then try to spend the Soviet Union into ruin like when St. Ronald was in the White House? Or when George W. Bush lowered taxes even further and then started two wars (one illegal and the other questionable) and not including the costs in the annual budgets but instead demanding serial emergency funding bills that 'charged' it all on the country's 'credit card' as it were, eh?




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The above is a reply to the following message:
Re: The 'Real' Tax Rates on Top Earners
By: Zimbler0
in FFFT
Wed, 12 Feb 14 5:20 AM
Msg. 61057 of 65535

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!
>>>

Zim.


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