OT- ‘Since when does our great free-market country punish success’…

[EconProf]

The record on tax cuts and their stimulative effect on the economy is not hard to find: goggle Reagan Tax Cuts or Kennedy Tax Cuts Revenue Effects, and you will find a variety of studies, articles, statistics, etc.
The clear message: total government revenues collected go UP in the years following the tax cut as the economy expands and people earn more and pay more in our progressive tax rate structure. For this to work, the tax rates have to first be high enough to discourage work, investment, risk-taking, etc. Kennedy cut marginal rates from a wartime-inspired 90% to 70% in the early 1960s and investment and the economy took off. Revenues increased from $94 billion to $153 billion from 1961 to 1968 (up 33% after inflation).
The early 1980s Reagan tax cut, once fully in effect in January of 1983 stimulated investment, hiring, and the economy to increase revenues by 54% by 1989 (28% after inflation).
With top federal rates now around 40%, there is less room for the stimulative effect to outweigh the effect of lower absolute rates, so there is some debate as to whether rate cuts would be revenue neutral or even decrease total revenues. But as to whether different tax rates and tax types affect behavior, that argument has long been settled.

[Anonymous]

What ever happened to the idea that a person is entitled to keep the money they earn and that they are responsible for meeting their own needs? Wishing to increase taxation on the rich is nothing more than class envy. The fair thing would be to establish a flat tax and then live within our means. Of course, people would rather have benefits paid for by the hard work done by others than to act out of fairness.

Health Care is not a right. The only rights guaranteed by the Constitution and God are life, liberty and the pursuit of happiness. Asking the government to steal from the productive to fund the poor and the non-productive is theft, and of course is supported and rationalized by the people who hope to benefit at others expense.

The funny thing is that the system they are proposing simply won’t work and will hasten the bankruptcy of the nation while increasing government interference into all our lives.

If what they are proposing is so great and wonderful, why are the people putting it together refusing to take part in it?

Let’s face it, we’re screwed.

The Turtle

[Anonymous]

What ever happened to the idea that a person is entitled to keep the money they earn and that they are responsible for meeting their own needs? Wishing to increase taxation on the rich is nothing more than class envy. The fair thing would be to establish a flat tax and then live within our means. Of course, people would rather have benefits paid for by the hard work done by others than to act out of fairness.

Health Care is not a right. The only rights guaranteed by the Constitution and God are life, liberty and the pursuit of happiness. Asking the government to steal from the productive to fund the poor and the non-productive is theft, and of course is supported and rationalized by the people who hope to benefit at others expense.

The funny thing is that the system they are proposing simply won’t work and will hasten the bankruptcy of the nation while increasing government interference into all our lives.

If what they are proposing is so great and wonderful, why are the people putting it together refusing to take part in it?

Let’s face it, we’re screwed.

The Turtle

[Anonymous]

What ever happened to the idea that a person is entitled to keep the money they earn and that they are responsible for meeting their own needs? Wishing to increase taxation on the rich is nothing more than class envy. The fair thing would be to establish a flat tax and then live within our means. Of course, people would rather have benefits paid for by the hard work done by others than to act out of fairness.

Health Care is not a right. The only rights guaranteed by the Constitution and God are life, liberty and the pursuit of happiness. Asking the government to steal from the productive to fund the poor and the non-productive is theft, and of course is supported and rationalized by the people who hope to benefit at others expense.

The funny thing is that the system they are proposing simply won’t work and will hasten the bankruptcy of the nation while increasing government interference into all our lives.

If what they are proposing is so great and wonderful, why are the people putting it together refusing to take part in it?

Let’s face it, we’re screwed.

The Turtle

[Anonymous]

What ever happened to the idea that a person is entitled to keep the money they earn and that they are responsible for meeting their own needs? Wishing to increase taxation on the rich is nothing more than class envy. The fair thing would be to establish a flat tax and then live within our means. Of course, people would rather have benefits paid for by the hard work done by others than to act out of fairness.

Health Care is not a right. The only rights guaranteed by the Constitution and God are life, liberty and the pursuit of happiness. Asking the government to steal from the productive to fund the poor and the non-productive is theft, and of course is supported and rationalized by the people who hope to benefit at others expense.

The funny thing is that the system they are proposing simply won’t work and will hasten the bankruptcy of the nation while increasing government interference into all our lives.

If what they are proposing is so great and wonderful, why are the people putting it together refusing to take part in it?

Let’s face it, we’re screwed.

The Turtle

[Anonymous]

What ever happened to the idea that a person is entitled to keep the money they earn and that they are responsible for meeting their own needs? Wishing to increase taxation on the rich is nothing more than class envy. The fair thing would be to establish a flat tax and then live within our means. Of course, people would rather have benefits paid for by the hard work done by others than to act out of fairness.

Health Care is not a right. The only rights guaranteed by the Constitution and God are life, liberty and the pursuit of happiness. Asking the government to steal from the productive to fund the poor and the non-productive is theft, and of course is supported and rationalized by the people who hope to benefit at others expense.

The funny thing is that the system they are proposing simply won’t work and will hasten the bankruptcy of the nation while increasing government interference into all our lives.

If what they are proposing is so great and wonderful, why are the people putting it together refusing to take part in it?

Let’s face it, we’re screwed.

The Turtle

[Anonymous]

[quote=Turtle69]What ever happened to the idea that a person is entitled to keep the money they earn […][/quote]

It died over a thousand years ago when taxes were first created. The world has somehow managed since.

[quote=Turtle69]The only rights guaranteed by the Constitution and God are life, liberty and the pursuit of happiness.[/quote]

Perhaps you should come out of your turtle shell and actually read the Constitution. Report back when you find the words “life, liberty and the pursuit of happiness.”

[Anonymous]

[quote=Turtle69]What ever happened to the idea that a person is entitled to keep the money they earn […][/quote]

It died over a thousand years ago when taxes were first created. The world has somehow managed since.

[quote=Turtle69]The only rights guaranteed by the Constitution and God are life, liberty and the pursuit of happiness.[/quote]

Perhaps you should come out of your turtle shell and actually read the Constitution. Report back when you find the words “life, liberty and the pursuit of happiness.”

[Anonymous]

[quote=Turtle69]What ever happened to the idea that a person is entitled to keep the money they earn […][/quote]

It died over a thousand years ago when taxes were first created. The world has somehow managed since.

[quote=Turtle69]The only rights guaranteed by the Constitution and God are life, liberty and the pursuit of happiness.[/quote]

Perhaps you should come out of your turtle shell and actually read the Constitution. Report back when you find the words “life, liberty and the pursuit of happiness.”

[Anonymous]

[quote=Turtle69]What ever happened to the idea that a person is entitled to keep the money they earn […][/quote]

It died over a thousand years ago when taxes were first created. The world has somehow managed since.

[quote=Turtle69]The only rights guaranteed by the Constitution and God are life, liberty and the pursuit of happiness.[/quote]

Perhaps you should come out of your turtle shell and actually read the Constitution. Report back when you find the words “life, liberty and the pursuit of happiness.”

[Anonymous]

[quote=Turtle69]What ever happened to the idea that a person is entitled to keep the money they earn […][/quote]

It died over a thousand years ago when taxes were first created. The world has somehow managed since.

[quote=Turtle69]The only rights guaranteed by the Constitution and God are life, liberty and the pursuit of happiness.[/quote]

Perhaps you should come out of your turtle shell and actually read the Constitution. Report back when you find the words “life, liberty and the pursuit of happiness.”

[SK in CV]

[quote=EconProf]
The clear message: total government revenues collected go UP in the years following the tax cut as the economy expands and people earn more and pay more in our progressive tax rate structure. [/quote]

I think that message is far from settled. From US Treasury numbers:

You’ll note that in the years immediately following the Kennedy tax cuts, revenue was relatively flat. In the years following the Reagan tax cuts in 81 and 82, revenues declined, and it took almost 6 years for them to return to levels before the cuts. In the years immediately following the Bush I tax increases, revnues increased. And after a small decline during the recession of the early 90’s, after the Clinton tax increase, revenues sharply increased (as the economy grew at historically high rates). After the Bush II tax cuts, revenues initially fell sharply for 4 years(beginning with the recession of the early part of this decade), and have risen since but still not to the level they were in 2000.

As I said, there is no empirical evidence that tax cuts raise revenues. Historically, that has simply not consistently been the case. Other factors, of course, have been present. The economy is cyclical, and marginal tax rates are not the only factor which drives it. But the perfect model has not been created. At best, supply side theory has provem to be an incomplete model. At worst, a total failure.

[SK in CV]

[quote=EconProf]
The clear message: total government revenues collected go UP in the years following the tax cut as the economy expands and people earn more and pay more in our progressive tax rate structure. [/quote]

I think that message is far from settled. From US Treasury numbers:

You’ll note that in the years immediately following the Kennedy tax cuts, revenue was relatively flat. In the years following the Reagan tax cuts in 81 and 82, revenues declined, and it took almost 6 years for them to return to levels before the cuts. In the years immediately following the Bush I tax increases, revnues increased. And after a small decline during the recession of the early 90’s, after the Clinton tax increase, revenues sharply increased (as the economy grew at historically high rates). After the Bush II tax cuts, revenues initially fell sharply for 4 years(beginning with the recession of the early part of this decade), and have risen since but still not to the level they were in 2000.

As I said, there is no empirical evidence that tax cuts raise revenues. Historically, that has simply not consistently been the case. Other factors, of course, have been present. The economy is cyclical, and marginal tax rates are not the only factor which drives it. But the perfect model has not been created. At best, supply side theory has provem to be an incomplete model. At worst, a total failure.

[SK in CV]

[quote=EconProf]
The clear message: total government revenues collected go UP in the years following the tax cut as the economy expands and people earn more and pay more in our progressive tax rate structure. [/quote]

I think that message is far from settled. From US Treasury numbers:

You’ll note that in the years immediately following the Kennedy tax cuts, revenue was relatively flat. In the years following the Reagan tax cuts in 81 and 82, revenues declined, and it took almost 6 years for them to return to levels before the cuts. In the years immediately following the Bush I tax increases, revnues increased. And after a small decline during the recession of the early 90’s, after the Clinton tax increase, revenues sharply increased (as the economy grew at historically high rates). After the Bush II tax cuts, revenues initially fell sharply for 4 years(beginning with the recession of the early part of this decade), and have risen since but still not to the level they were in 2000.

As I said, there is no empirical evidence that tax cuts raise revenues. Historically, that has simply not consistently been the case. Other factors, of course, have been present. The economy is cyclical, and marginal tax rates are not the only factor which drives it. But the perfect model has not been created. At best, supply side theory has provem to be an incomplete model. At worst, a total failure.

[SK in CV]

[quote=EconProf]
The clear message: total government revenues collected go UP in the years following the tax cut as the economy expands and people earn more and pay more in our progressive tax rate structure. [/quote]

I think that message is far from settled. From US Treasury numbers:

You’ll note that in the years immediately following the Kennedy tax cuts, revenue was relatively flat. In the years following the Reagan tax cuts in 81 and 82, revenues declined, and it took almost 6 years for them to return to levels before the cuts. In the years immediately following the Bush I tax increases, revnues increased. And after a small decline during the recession of the early 90’s, after the Clinton tax increase, revenues sharply increased (as the economy grew at historically high rates). After the Bush II tax cuts, revenues initially fell sharply for 4 years(beginning with the recession of the early part of this decade), and have risen since but still not to the level they were in 2000.

As I said, there is no empirical evidence that tax cuts raise revenues. Historically, that has simply not consistently been the case. Other factors, of course, have been present. The economy is cyclical, and marginal tax rates are not the only factor which drives it. But the perfect model has not been created. At best, supply side theory has provem to be an incomplete model. At worst, a total failure.

[Author]

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