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Originally Posted by bigconig  Thia is the real teller here. Bush's tax cuts for the wealthy were supposed to grow the economy and create jobs. They did neither. Add to that the drunken spending of the GOP for the last 8 years and you have the crap economy we got now. The reality is with all the debt the country has stacked up revenues have to be increased, if that means that a plumber making a 1/4 million a year has to pay a few more bucks than so be it. |
The question is, how much worse off would we be without the tax cuts? Did we divert a recession? Possibly, we'll never know. Throughout history, cutting taxes equals more revenue to the government. Why is this so hard for libs to grasp? Reagan proved this. You can't learn from history?
"Consumer spending typically equals two-thirds of GNP. As you would expect, lowering taxes raises disposable income, allowing the consumer to spend additional sums, thereby, increasing GNP. (To learn more, read Economic Indicators To Know.)
Reducing taxes, therefore, pushes out the aggregate demand curve as consumers demand more goods and services with their higher disposable incomes. Supply side tax cuts are aimed to stimulate capital formation. If successful, the cuts will shift both aggregate demand and aggregate supply because the price level for a supply of goods will be reduced, which often leads to an increase in demand for those goods. (To learn more, read Economics Basics.)
Tax Cuts and the Economy
Tax cuts, when used properly, have stimulated the economy. Many credit President George W. Bush's tax cuts for moving the economy out of recession. Similarly, in 1964, Congress enacted an 18% cut in personal taxes to spur growth. The legislation was designed to encourage consumer spending - many believe that it succeeded admirably as consumers delivered a textbook reaction.
According to a December 2004 article in Celtia.info, a magazine distributed in Celtic countries, tax cuts have also shown positive results in other countries as well. Ireland's recent tax cuts are believed to have improved living standards significantly. For years, the Irish were faced with high unemployment, budget deficits and high taxes. In 1986, Ireland faced a fiscal crisis. After reducing government spending, the government lowered taxes on both individuals and corporations. Over the next 13 years, Ireland's per capita income went from only 63% of the United Kingdom's average to besting it in 2000. Ireland now enjoys one of the highest standards of living in Europe."
http://www.investopedia.com/articles/07/tax_cuts.asp