Tax Cuts: The B.S. and the Facts

[fascisthunter]

Tax Cuts: The B.S. and the Facts
By Larry Beinhart, AlterNet. Posted November 11, 2008.

That tax cuts stimulate the economy is taken as a matter of faith, but the brute facts suggest otherwise.

Likewise, many right-wing critics insist that the Clinton boom actually started under Bush the First. It is necessary to remember that Bush the First also raised taxes (from 28 percent to 31 percent) and was soundly thrashed by the conservatives for doing so. Stephen Moore of the Cato Institute called it "The Crime of the Century" and explained at length how it had brought ruin to America.

Tax Increases Are Followed by Economic Growth

Three of the four high-growth periods cited above followed significant tax hikes.

The fourth, the Truman-Eisenhower years, began with a top tax rate of 91 percent -- it couldn't get much higher.

http://www.alternet.org/workplace/106410/tax_cuts%3A_the_b.s._and_the_facts/?page=2


Very, very interesting...

[bemildred]

1. Tax increases force reinvestment.

This ought to be obvious.

[fascisthunter]

2. It's Not...

that's why I hope people kick this...

It appears tax cuts for the well off and National debt are consistent with conservative leadership. THAT IS A FACT!

[Hannah Bell]

4. yep, history bears out the correlation.

[JHB]

6. They also encourage long-term asset building...

...because long-term stability and profitability becomes a better investment than maximizing quarterly profits at the expense of long-term viability.

It also takes the shine off of "get rich quick" speculation.

[SammyWinstonJack]

3. K&R!

[TheFarseer]

5. Tax cuts and economic growth are not related

do you think Henry Ford would not have produced model T's if the tax rate would have been higher? Do you think Bill Gates would have not started Microsoft if the tax rate was higher? Business cylces coupled with innovation and new products account for economic growth or lack there of. Look at the 90's - we were invesnting all kinds of computer and internet related products. Now the best we can come up with is a phone that plays music. Name a HUGE invention in the 70's - besides pet rock. You can't. Name a huge invention in the 20's or something that's use was becoming widespread - cars, refrigerators, radio and all sorts of appliances. And none of it had anything to do with tax rate.

[fascisthunter]

7. explain why Tax Cuts and Tax Increases do Correlate with Recession and Growth

why is it we see so much growth after tax increases, and why do we go into recession after tax cuts, especially for the rich?

I wonder how economic disparity between the rich and poor correlate to tax cuts for the wealthy. That would be interesting...

[fascisthunter]

8. read it from the beginning

http://www.alternet.org/workplace/106410/tax_cuts%3A_the_b.s._and_the_facts/?page=1