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resurrectionsongJuly 15, 2004Lower Taxes, Higher RevenuesLower taxes that stimulate the economy can result in higher tax revenues whereas higher taxes the depress the economy result in lower tax revenues. Of course, these facts only work within a certain range and these facts rely on the underlying assumption of an economy within a reasonably healthy range. For example, our current revenues are higher than expected because the business climate has been so strong:
The point is, Kerry wants to raise taxes to lower the deficit (and so do a wide range of my "conservative" friends, surprisingly) because of an assumption that higher taxes will increase revenue. By rolling back the Bush tax cuts, in all likelihood, there would be a temporary increase in revenue followed by lower economic performance followed by lowered revenues. People who believe in higher taxes are trading a short term, minor gain for a long term, major loss in productivity, overall strength, and real gains in income and standard of living for the rest of us. What leads to our current deficit is not tax revenues or overall economic performance, but spending. Lower taxes are good for us--and good for government coffers, as odd as that might seem. For them to remain a good thing, though, they have to be coupled to a government that is thrifty and intelligent in its spending priorities. Kerry sees the problem, but his solution will make the situation worse. Now, if we in the GOP can just find a way to get the checkbook away from President Bush... (With thanks to Shad0runr.) Posted by zombyboy at July 15, 2004 02:29 PM | TrackBackComments
I really believe that if Bush has a clear mandate, he's gonna make a strong effort to cut government spending sharply. I think the time for the federal government to even consider reigning in spending is long passed, like before Reagan got out of office. Posted by: bryan at July 15, 2004 02:50 PMThat's the problem, Bryan. They are reigning in spending, when they should actually be reining in spending. [smirk] Posted by: nathan at July 15, 2004 04:15 PM...I think I may be more proud of that pun than any others I can think of in recent history. Posted by: nathan at July 15, 2004 04:16 PMLaugh and the world laughs with you. Pun and you stand alone. (I thought is was a great pun!) Posted by: Shad0runr at July 15, 2004 04:56 PMActually, it's "fart and you stand alone." But punning isn't all that different, so... Posted by: McGehee at July 15, 2004 08:09 PMWell, punning also leaves a stench that takes some time to dissipate...and also feels SOOOO good when you relax and let one out. Posted by: Nathan at July 15, 2004 09:54 PMI doubt we'll ever see spending truly get cut, since now a reduction in the rate of growth is referred to as a spending cut. Nathan, I hope you're right about Bush, but I'll sure believe it when I see it. Posted by: Craig at July 15, 2004 09:58 PMYou know, it's entirely defensible to say that if the government grows at less than the rate of the economy or the population, it is a cut. It's also entirely defensible to note that if the economy shrinks, the government will seem to "grow" if it doesn't shrink with the economy. From my perspective, Republicans who are mad at Bush for not cutting spending are not being sensible. Nor are Democrats who are made at him for whatever latest damnfoolishness they're mad at him for. Fact is the man got himself a war, an unforeseen national emergency, and a major recession all in his first year in office, and had to find the political capital to deal with all of them at once. And the truth is, spending is controlled by Congress. Which Republicans are in charge of. So unless you're expecting Bush to declare major hostilities with the Congress, demanding massive spending cuts while simultaneously demanding support for the war effort... Posted by: Dean Esmay at July 16, 2004 03:41 AMSome GOP members of the House have tried to make a stand on spending. Dean, there is some merit to the idea that the President has a lot of influence over what the congressional leadership in his party does. He and Frist and Hastert tend to be on the same page on most things, I'm sure. But even at that, I can't really bring myself to get more than a tad miffed over spending because of just what you say: war, national emergency, inherited recession. Also throw in Daschle's "Jumpin' Jim" power grab, and the continuing fecklessness of the Senate Republican leadership. Yes, it's true, the Republicans in the Senate have no feck. Posted by: McGehee at July 16, 2004 05:20 AMI can be upset about spending because of bad legislation like the Medicare bill. Instead of looking for ways to make government leaner and more efficient, our Pres handed us a massively expensive entitlement program, and the House and Senate GOP green lit the thing all the way through. To be completely honest, spending under Bush has been downright Donkey-esque. Clinton, as I said previously on this site, has a much better record on spending (although I also noted that his record probably would have been much worse if he had a congress willinging to green light things like his wife's health care program). There's a lot to like about Bush, in my world. But there's a lot to feel pretty uncomfortable about, too. Posted by: zombyboy at July 16, 2004 08:14 AMPost a comment
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