Wednesday, February 15, 2006

Tax cuts work

The U.S. economy is red hot, but nobody is talking about it.

The latest numbers from the Congressional Budget Office show a clear supply-side effect where lower tax rates and higher after-tax rewards for work and investment have expanded the economy and created a huge surge of tax collections. Dan Clifton of the American Shareholders Association first reported that actual revenues from the lower capital-gains tax rate came in $46 billion higher over the last three fiscal years and $62 billion higher over the last three calendar years than congressional estimates. The Laffer curve is alive and well.

7 comments:

leftdog said...

So... what is the current US Government deficit for this fiscal year? See how this works? Right wing governments BORROW Billions of $$$ from Banks - cut the taxes of the rich and Mega-corporations and then guys like david mclean say the economy is 'hot'! Seems to me that Joe Sixpack with his regular job is paying for the 'hot economy' because it is his/her taxes that are going to have to pay off the accumulating debt for all of this fabricated Corporate Welfare. Isn't this what you usually accuse the 'Left' of???

leftdog said...

Okay... since none of you Taxpayer guys will engage me, I shall continue. The current United States Government budget deficit for this year is $337 BILLION!. In lay mans terms, that means that Bush is spending $337 Billion more dollars than he is taking in. Is that wise? So david mclean, when you brag about how 'hot' the US economy is, remember it is because the US government is spending $337 BILLION more than it has. Borrowed money. Taking the corporate world out of the tax loop. And since you right wing ideologues believe that Corporate America should not pay taxes, poor old Joe and Mary Sixpack will have to pay off that debt eventually. We, the People see thru your crap and lies.

leftdog said...

"The Laffer curve is alive and well". Nonsense. John Kenneth Galbraith once said: "The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness." Amen

archie said...

The War in Iraq is one of the main reasons the economy is maybe booming/?? I question that. 90% of Americans get no benefits from tax cuts. The biggest employer in America is the armed forces and armaments/financed by the people of the states. There goes you theory about how good tax cuts are.

David MacLean said...

Did you read the post, Leftdog? Did you check the link? The whole point is that revenues are higher for the government than they were before the tax cuts.

As for the deficit, it is a shame. But it's not caused by tax cuts. If you go back into the archives you will find a link to an analysis that shows that Bush II is the biggest-spending president in 40 years. And it's NOT because of military spending.

Thanks for stopping by.

leftdog said...

Archie, thank you for that! The CTF have not responded to my posts on this thread. The American deficit is absolutelty ridiculous! That is why I have been so adamant in disputing the CTF contention that the US economy is 'hot' due to all of the corproate tax cuts. You are correct in you analysis on tax cuts. The EXTREME right wing in Canada is ideoligically convinced that the corporate sector should not have to pay taxes - that somehow thru their economic voodoo we will all benefit. However, the reality is that individual wage earners must now carry the full burdern of taxation and in the current case of the USA, the burden that the average citizen must now carry contains BILLIONS of new debt. Shameful. Nobody is more IDEOLOGICALLY DRIVEN in the nation that the extreme right wing - and I include the CTF in that group of rogues!!! Shamful!!!

leftdog said...

But David ( and I missed your last post before I posted again) - you were the one who talked about how 'hot ' the US economy was. I retorted that 'DUH', infuse an extra $337Billion 'borrowed' dollares into the economy and of course it is gonna look hot. If you went and borrowed $3370 and put into your March household budget - you could have a GREAT month! 20 year old Scotch - steak every night, etc. BUT you would have to pay for that sometime. Now where I struggle with you CTF guys is because I need to know why you think that the average Joe/Mary should have to carry a nations full load? Why are you so determined that the corporate world pay not one cent of tax (and I'm not talking about property taxes). I don't want to fight with you BUT for heaven's sake man!

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