Monday, May 16, 2011

Death and Taxes...

...I think we can add that not only are taxes certain, but they are certainly not understood by most people. 

The nation's finances are in a crisis.  Not because of the people, but because of the people we elected.  They haven't balanced the budgets, they have overspent, they have over taxed.  They shape the environment that either promotes economic activity, or stifles it. 

...and after they got us into this mess, who believes they can fix it?  We better hope for some change..

Reaganomics Vs. Obamanomics: Fallacies Offered By The Left by Peter Ferrara, FORBES

"...Most fundamentally, many insist that they do not understand how tax rate cuts promote economic growth..."

"...The tax rate...determines how much the producer is allowed to keep out of what he or she produces. For example, at a 25% tax rate, the producer keeps three-fourths of his production. If that rate is increased to 50%, the producer keeps only half of what he produces, reducing his reward for production and output by one-third. Incentives are consequently slashed for productive activity, such as savings, investment, work, business expansion, business creation, job creation, and entrepreneurship. The result is fewer jobs, lower wages, and slower economic growth, or even economic downturn..."

"...Critics have the most fevered difficulties in dealing with the facts regarding the effects of these Bush tax cuts. They quickly ended the 2001 recession, despite the contractionary economic impacts of 9/11, and the economy continued to grow for another 73 months. After the rate cuts were all fully implemented in 2003, the economy created 7.8 million new jobs and the unemployment rate fell from over 6% to 4.4%. Real economic growth over the next 3 years doubled from the average for the prior 3 years, to 3.5%..."

"...In response to the rate cuts, business investment spending, which had declined for 9 straight quarters, reversed and increased 6.7% per quarter. That is where the jobs came from. Manufacturing output soared to its highest level in 20 years. The stock market revived, creating almost $7 trillion in new shareholder wealth. From 2003 to 2007, the S&P 500 almost doubled. Capital gains tax revenues had doubled by 2005, despite the 25% rate cut! That should not have been a surprise. Capital gains revenues rose sharply after the Gingrich capital gains cuts in 1997..."

"...a majority of the Obama “tax cuts” were “refundable” income tax credits, which involve sending a government check to people who do not even pay income taxes, economically indistinguishable from increased government spending.  That is why even the federal government’s own official beancounters account for such refundable credits in the federal budget as spending rather than tax cuts..." 

"..Jack Kemp always used to say if you want to soak the rich, cut their tax rates..."

And now a news update from people in the media who really get it:

Update: Obama Yet Again Refrains From Obliterating Human Race


nicole said...

Good stuff ~ "And the man with no friends, tells it like it is."

innominatus said...

You're right. Tax cuts = more economic activity and more govt revenue. Plenty of data to back that up. But data is irrelevant to the left. Tax policy, climate change, whatever the issue, they'll bitterly cling to their failed "models" rather than accept actual facts.

Josiah said...

Thanks to that Freemasons line, the whole of our cafeteria is now staring at me. Preciate it.