Re: Tax Cuts Make Money For The Government


"JP" <JPBloche@xxxxxxxx> wrote in message
news:1140984223.063693.316050@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Jerry Okamura a écrit :


It does not take a brain surgeon to know what the problem is. It is
really
simple. You cannot have a deficit if you spend the same amount of money
as
you receive. You can eventually eliminate the deficit, rather painlessly,
if you do one simple thing. That is spend just a little bit less than
you
receive and the debt will disappear. And it does not matter if you cut
taxes or not, all you have to do is adjust your spending to reflect the
revenue that is brought in by those taxes. The problem I find with your
argument is that you really don't want to bring revenue and expense in
line
with each other. You want increased revenue, so you can spend more
money.....


First, your posting fused mine with your own response so the reader
could not tell who said what.

Sorry about that.

Two really different things have occurred.

The Reagan administration and the love affair with supplied economics
was sold with the idea that tax cuts would increase tax revenues to
the extent that government deficits would go away. This was a free
lunch approach which did not work out.

This expectation was not present in the Bush administration, nobody
anticipated a revenue increase from tax reduction which
would cancel out the deficit. The Bush approach was more in the
Keyneisan sense that both a tax reduction and deficit spending
would initially stimulate the economy with tax revenues increasing
later because the economy was expanding. BUT there was NO
anticipation in Bush economics that the deficits would go way.
So they cheated in the Keynesian sense.

The Reagan administration switched plans and saw that big deficits
as an excuse method for reducing social spending. This still is
part of the Bush doctrine.

The classic Keynesian model did function during Clinton's
admiinistration
when the deficits went away. The irony of our times is that
Republican administrations should be fiscially irresponsible.

I hope this makes things clearer for you.

I do not think it really matters what scheme you come up with or what
excuses any administration uses to try and "sell" the idea, becuase it seems
to me,they are also trying to achieve an ideological goal at the same time.
What matters is balancing expenses with revenue...




.

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