Quote:
Originally Posted by DaddyHalbucks
For an example, look at the Regan tax cuts. They actually INCREASED government revenue (tax) receipts because they boosted the economy.
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That is actually false and I challenge you to provide data to back that up.
Revenue did eventually go up but that was because the population (tax base) and the economy grew. There is no empirical evidence that the economy grew
because of the tax cuts, and it's likely that revenue would have increased more had tax rates remained higher.
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As for what Shemp said, I agree 100%. If people have more money in their pockets, they'll spend more, and that has a stimulative and a multiplier effect throughout the economy.
So therefore, the tax cuts need to go to the people
most likely to spend all of it, and that would be the working poor, and seniors on a fixed income.
So why are the republicans against the payroll tax rebate for lower income workers and pushing for capital gains tax cuts and cuts to the top brackets? (and/or making the Bush tax cuts permanent)
Seems like, based on the spending more money argument, that the solution would be to do things like raise the minimum wage, expand the EITC, exempt low income seniors on social security from payroll taxes and things like that.
