Yes, math is required, you should have paid more attention in school.
First, a spot on quick review of the so-called “Fiscal Cliff” negotiations.
Here is the bottom line kids, our Dear Leader has no issues with going over that cliff. Really, Barry doesn’t see any downside to it. He knows that tax hikes, even limited ones, are going to have a negative effect on the economy. The across the board tax hikes on top of new Obamacare taxes are going to be even worse. This way he can blame the Republicans, and the democrats with press credentials will back him on this, and then take credit for the budget cuts.
One of the persistent myths that left repeats is that tax cuts don’t pay for themselves. This is one of those talking points that sounds simple, but is clearly false when you do the math.
As JG points out:
Given the period from 1994 to 1999, the growth period under Clinton, federal revenues increased by 1.3% for every 1% increase in GDP.
Given the period from 2003-2007, the growth period under Bush, with the lower tax rates, federal revenues increased by 1.7% for every 1% increase in GDP.
Pretty simple. Lower taxes results in an increase in GDP, which results in an increase in federal tax revenues. Note that most leftists will deny this and attack you personally for daring to bring actual math into the argument.
Let’s run with these numbers:
Applying those percentages in a comparison model, then, we can see that if given a starting point of $2.5 Trillion in revenues, and a growth of 3%(real GDP growth) in GDP, that under the Clinton tax rates, the following year’s revenues would equal roughly $2.598 Trillion. Under the Bush tax rates, that figure goes up to $2.628 Trillion. For a ten year period, the difference in revenue, assuming constant growth in GDP, becomes roughly $2.2 Trillion dollars difference in revenue
Now 2.2 Trillion dollars is about half of what our Dear Leader added to the federal debt in his first term. If Barry really was worried about the increasing federal debt and the stagnant economy, he would be working really, really hard to avoid across the board tax hikes. What is interesting, and not surprising to anyone who has been paying attention, is that Barry clearly isn’t interested in reducing the Federal debt, or improving the economy.
“That’s all you want to do. That’s it. It’s your way or the highway. Raise the rates on the rich. No other way. Your way or the highway. That’s it. That’s where we are. Thank you, Senator.”
“So how come you’re not moving forward? What’s the problem? Because the American people are so tired of this, and they are really tired of the lawmakers thinking that the American people are stupid. You can’t keep coming on the show every week saying the same thing: ‘It’s not a balanced approach.’”
“You’re talking about $1.2 trillion in revenue, but you’re not prepared to put anything on the table. People are not stupid!”
The best part was that after she committed this act of actual journalism, traders on the floor watching erupted in cheers and applause. They do the math and know what is going on.
“Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government.”
– President John F. Kennedy, January 17, 1963, Annual Budget Message to the Congress, fiscal year 1964
1. It contains no provisions to provide any additional doctors or nurses. It does contain funding for 16,000 new IRS agents in order to fund Obamacare.
2. Massachusetts elected a Republican to the Senate and his primary election promise was to oppose Obamacare.
Alternate question, is he actually just that stupid? These question are raised because of his “performance” on last Sunday’s Meet the Press. Let’s review the transcript:
MR. CAIN: We replace capital gains tax. We replace the payroll tax. We replace corporate income tax, replace personal income tax, and replace the death tax. It is a replacement tax structure.
MR. GREGORY: But where do state taxes go? You’re saying they’re going to be repealed?
MR. CAIN: If you–with the current structure, you have state taxes, right? So with this new structure, you’re still going to have taxes–state taxes. That is muddying the water.
MR. GREGORY: How so?
MR. CAIN: Because today, under the current tax code, state taxes are there if they have it. If they don’t have a state taxes, they don’t have it. It has nothing to do with this replacement structure for the federal tax code.
MR. GREGORY: But that doesn’t make any sense to me. If I’m already paying state taxes, and I have a new Cain administration national sales tax, I’ve got more state taxes.
Mr. Gregory appears to be deeply confused on the difference between State taxes and a sales tax. He is either spiking his coffee and hosting a national political talk show drunk or is completely incompetent for the position he holds. The other explanation is that does know the difference, but is deliberately attempting to confuse the issue in order to make the current Republican front runner look bad. That last option points to a deep and widespread far left wing extremist media bias at NBC News/MSNBC.
So which is it? Drunk, incompetent or deliberately attempting to mislead the American people?
Let us set the Way Back Machine to 1962, when a democrat President presented his plan to create jobs and economic spur growth.
That’s right, dear readers, President Kennedy called for across the board tax cuts and tax reform in order to create jobs, grow the economy, and increase federal revenue.
In yet another example of a leftist not paying their ‘fair share’ of taxes, we have Irish pop star Bono.
Bono, who is famous for “contributing to global warming” by flying around the globe in private jets, in his never ending quest for people to give their money to causes he believes in.
Well, it seems that Bono doesn’t believe in the Irish government, because he has restructured his business to avoid paying taxes in Ireland. Yes, Bono, and the rest of the pop band U2, are behaving just like the “greedy corporations” that their fans protest against.
“…that when it comes to some Democrats and particularly the President, “high gas prices are not an unintended consequence of their policies: it is the means by which they will accomplish their goal.” Their goal is to raise the price of gasoline so that you reduce your consumption of it.”
“…high gas prices are an economy killer, so even if there is some modest increase in tax income from that tax hike in general, the drag on the economy will mean reduced taxes in other areas. Again, they are depending on you being too stupid to see through all of this.”
The US Tax code is a Byzantine maze that Rube Goldberg would claim is too complex. As I said before…
One of good ideas of the President’s deficit reduction panel was to drastically simplify the tax code and reduce the highest tax rate to 25%. That will reduce the 30% plus overhead of the IRS and get uber-rich democrats, like my senior Senator, to actually pay their fair share of the taxes paid by almost every other working American.
Don’t expect democrats to embrace this idea though. It goes against their core values, like waging class warfare.
Former Federal Reserve Chairman Alan Greenspan said a surge in U.S. government “activism,” including fiscal stimulus, housing subsidies and new regulations, is holding back the economic recovery.
Wait! It gets better as Mr. Greenspan puts yet another nail in the coffin of Keynesianism.
“Any withdrawal of action to allow the economy to heal could restore some, or much, of the dynamic of the pre-crisis decade, without its imbalances.”
Not that this will slow down the big governmentfanatics in our Dear Leader‘s administration.
Speaking of which, it’s time to play “Fear the Boom and Bust” again!
This was the Quote of Day on July 23, 2010, but it rings so true right now it bears repeating.
“It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now … Cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus.”
President John F. Kennedy in 1962.
Wise words our Dear Leader and the congressional democrats should pay attention to.
