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Originally Posted by WhiplashDug
Interesting information... but it would be MORE useful if it actually took into account the fact that revenues were ALREADY declining do to the recession that began during the final years of the previous administration + the ripple effects of the 911 attacks.
More over, while you can argue that had those tax cuts NOT been made, the revenue would not have dipped as far as it did. But then how would you explain the record growth in overall tax revenue for the subsequant years?
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Im no Harvard graduate either - but that graph tends to show an overall gain of about 19% - and all the while, the US economy is reported to be in the shitter! How is this possible?
Don't get me wrong, I am in NO WAY a Bush supporter for too many reasons to list - but the tax cuts worked and spawned economic growth and DRASTICALLY increased overall federal tax revenue.
The thing you dont like to consider, is how much those extra bucks in the hands of the people actually contributed to the overall good of the economy and the growth of federal taxes. Every time we cut taxes, there is overall revenue growth, go back and look at when Regan & Kennedy did the very same thing. |
There is good and bad to be said about both types of economic policy. Historically the republicans give the cuts to the top earners and businesses in an effort to get them to invest that money back into the economy and create jobs and raise revenue. The democrats tend to think giving the money to the middle class will give them more to spend and they will increase demand which increases production and creates jobs. The reality is that the best answer is probably somewhere in the middle, but you can argue the finer points of this until you are blue in the face and never come up with a definitive answer.
You can argue that the tax cuts did help raise revenue but when you look historically, revenue has almost always grown regardless of tax cuts or no tax cuts. Here are some pretty cool graphs that show historic federal revenue.
http://www.marktaw.com/culture_and_m...ionalDebt.html
So sure, tax cuts could have something to do with the revenue gain, but I have to wonder how much of it has come from the fact that the government is dumping 2 billion a week into the economy as it funds the war in Iraq. that money tends to go into the hands of US soldiers and companies that support them and supply the defense department. that money has taxes paid on it and counts and federal revenue. Revenue is up, but deficit spending is at an all time high. If you pay me $1,000 per week and I then pay you a tax of $200 per week you could say I have income of $800 a month, but that $800 a month in income is costing you $4,000 a month to get.
I guess in the end we can only what if it so much. I happen to feel that the tax cuts didn't do everything they were meant to do and there are many outside factors influencing any real gains and others will say just the opposite. I think the only way we would ever know for sure is if the Iraq war never happened, or if the new president keeps them in place and the war ends.