Archive for June 30th, 2011
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Tax cuts for the rich? (result — record deficits, weak job growth, and the middle class losing ground).
Unfunded mandates to the states, like No Child Left Behind — record number of states running deficits, teachers teaching to the test.
Unfunded entitlements like Medicare Part D — crushing debt
Arrogance in dealing with the world — lack of cooperation on any number of issues.
__________
Myth 1: Tax cuts “pay for themselves.”
“You cut taxes and the tax revenues increase.” — President Bush, February 8, 2006
“You have to pay for these tax cuts twice under these pay-go rules if you apply them, because these tax cuts pay for themselves.” — Senator Judd Gregg, then Chair of the Senate Budget Committee, March 9, 2006
Reality: A study by the President’s own Treasury Department confirmed the common-sense view shared by economists across the political spectrum: cutting taxes decreases revenues.
Proponents of tax cuts often claim that “dynamic scoring” — that is, considering tax cuts’ economic effects when calculating their costs — would substantially lower the estimated cost of tax reductions, or even shrink it to zero. The argument is that tax cuts dramatically boost economic growth, which in turn boosts revenues by enough to offset the revenue loss from the tax cuts.
But when Treasury Department staff simulated the economic effects of extending the President’s tax cuts, they found that, at best, the tax cuts would have modest positive effects on the economy; these economic gains would pay for at most 10 percent of the tax cuts’ total cost. Under other assumptions, Treasury found that the tax cuts could slightly decrease long-run economic growth, in which case they would cost modestly more than otherwise expected. (http://www.cbpp.org/7-27-06tax.htm)
The claim that tax cuts pay for themselves also is contradicted by the historical record. In 1981, Congress substantially lowered marginal income-tax rates on the well off, while in 1990 and 1993, Congress raised marginal rates on the well off. The economy grew at virtually the same rate in the 1990s as in the 1980s (adjusted for inflation and population growth), but revenues grew about twice as fast in the 1990s, when tax rates were increased, as in the 1980s, when tax rates were cut. Similarly, since the 2001 tax cuts, the economy has grown at about the same pace as during the equivalent period of the 1990s business cycle, but revenues have grown far more slowly.
(http://www.cbpp.org/3-8-06tax.htm)
Jackson Hustead
Senator Marco Rubio addresses Floridians after a week of talking about debt reduction and the proper way forward in Libya. This week, he penned an op-ed in the Wall Street Journal titled “Why I Won’t Vote To Raise The Debt Limit.” Later in the week, he wrote a letter to Sens. Harry Reid and Mitch McConnell asking for a bipartisan resolution to authorize action in Libya and the removal of the Qaddafi regime.
Rolland Bosack
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Monnie Giese
What do you think, if you’re a Republican?
Of course, your tax cuts will mean a certain amount of pain for the American public — a crippled Medicare system, huge layoffs of teachers & cops & firemen, reductions in food stamp programs and prenatal health care programs for the poor, etc.
But from a GOP perspective, is there really any other way to improved US prosperity?
More reductions in the top rates charged to millionaires & billionaires, even if it produces a higher US national debt?
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