Romney Looks Like the Next Pres

Discussion in 'Politics' started by jem, Apr 13, 2012.

  1. jem

    jem

    I am not mixing up anything.
    You are the one who needs to show tax cuts
    do not stimulate the economy.

    Look at the bush cut numbers...
    After Bush cut taxes revenues went up 40 percent.


    Now Obama just spent the crap out of things.
    Last I checked Revenues were still down.
     
    #2951     Oct 17, 2012
  2. OK, so things back to normal I guess. Obama lost the first debate, easily won the second. And no one will care about the third. Still 65/35 on Intrade. No big deal.
     
    #2952     Oct 17, 2012
  3. Ricter

    Ricter

    You're the one who needs to show that spending does not stimulate the economy.
     
    #2953     Oct 17, 2012
  4. Do Tax Cuts Increase Revenue?

    It is a widely held belief in the U.S. that cutting tax rates actually increases government tax revenues, as people work harder to make more money, and having more money (either from working longer hours or simply because they have more income after paying lower taxes), they spend more. This increased consumption stimulates growth in the business sector of the economy, increasing business profits, allowing businesses to hire more employees, etc. and the economy grows. Economic growth then leads to more tax revenues for the government, even though taxes have been reduced.

    While this view has gained political currency, there is little evidence to support it. Indeed, as evident in the following graph, the evidence suggests that tax cuts do not increase revenues to the government in any meaningful way, but instead increase government deficits. Likewise, tax increases are often criticized as harmful to the economy and opponents argue that they do not actually increase government revenues. Again, the available evidence suggests that the opposite is true.

    Regardless of the effect of changes in tax rates on the economy, it is important to recognize that the idea that tax cuts increase government revenues while tax increases decrease them is a myth. It is equally important to recognize that in the long run, taxes are equal to government spending. Every dollar the government spends is a tax dollar -- it has no other source of revenue. The question is when that dollar will be paid, and who will pay it.

    The following graph, compiled by the Congressional Budget Office (but modified below to point out major pieces of tax legislation), illustrates the relationship between government tax revenues, budget deficits and changes in tax legislation over the past quarter-century. The graph is followed by a discussion summarizing the highlights of major tax legislation during this period.


    http://rricketts.ba.ttu.edu/Tax Rates and Revenues.htm
     
    #2954     Oct 17, 2012
  5. Ricter

    Ricter

    This article does not qualify itself for instances of economic crowding out, where certain tax cuts very well may end up growing GDP, and thus revenue.
     
    #2955     Oct 17, 2012
  6. Obama hitting weekly high on intrade at 65/100
     
    #2956     Oct 17, 2012
  7. BSAM

    BSAM

    We don't have a revenue problem.
    We have a spending problem.

    Would you trust your bank account to a whore?
     
    #2957     Oct 17, 2012


  8. :D :D :D :D :D


    [​IMG]
     
    #2958     Oct 17, 2012
  9. I'd trust it with a whore before I trust it with a republican president
     
    #2959     Oct 17, 2012
  10. BSAM

    BSAM

    What's the difference?
    Ever heard of Gary Johnson?
     
    #2960     Oct 17, 2012