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05/08/2007

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Right on brother. Another thing you might want to worry about: After the Kennedy tax cuts, the Reagan tax cuts, and the Bush tax cuts - all of which focused on reducing the marginal rates and resultingly stimulated private sector growth - there are still seemingly intelligent people who fail to realize that revenues increased as a direct result. What rational policy do you have in mind that would have dictated going to war in the middle of a recession that would have been made worse by further tax increases?

Happy to debate econ policy with you anytime, anywhere just one word of caution. Don't listen to your favorite oracle of econ policy Jimmy C if you want to win.

I was going to point out your bone-headed comment about tax cuts, but Pursuit beat me to it.

Tax cuts act to stimulate the economy, and, in a seeming paradox, boost tax revenues.

Some facts:

Low-tax countries do better economically than high-tax countries. Look at Ireland, Hong Kong (not a country, but the principle still applies), Iceland, and Dubai for starters.

The US has the second-highest corporate tax rates in the industrialized world. The top five in order are Japan; US; Germany; Canada; and France. (http://www.taxfoundation.org/blog/show/1471.html)

The grossly unreliable Joint Committee on Taxation predicted that the cutting of the capital gains rate from 20% to 15% would result in a $5.4 billion loss in revenues from 2003 to 2006. What actually happened was that tax revenues increased $133 billion.

The Congressional Budget Office was also wrong, though not as stupendously: they predicted $197 billion in revenues for the same period. The actual take was $330 billion. (http://www.willisms.com/archives/2007/04/trivia_tidbit_o_433.html)

Why can't you Democrats learn something about economics? Why do you keep believing that tax increases result in greater government revenues when the reality on the ground is that tax cuts result in increased tax revenues? Why can't you people get that into your heads?

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