Re: Why Do the Republicans Hate the Clintons so Much?


"Josh Rosenbluth" <jrosenbluth@xxxxxxxxxxx> wrote in message
news:ab64a351-ab4f-4c99-909c-43bbebc2e0de@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On Feb 7, 7:34 am, "John Galt" <whoisjohng...@xxxxxxxxxxxxxx> wrote

Not a matter of snark. Simply a matter of economic history. Increased
effective taxation rates lead to economic slowdown, unless you are
fortunate
enought to catch a "bubble" like the dot-com boom (which are not pleasant
when they break, of course).

Supporting data?

1) Mellon tax cuts of the 1920's drove rates down from a max rate of 77% to
25%. Solved the post WWI malaise and drove heavy 1920's economic expansion
that is a part of history. Tax revenues as a function of increased economic
activity rose from 719M in 1921 to 1164M in 1928 (61%).\

Mellon quotation on the matter:

"The history of taxation shows that taxes which are inherently excessive are
not paid. The high rates inevitably put pressure upon the taxpayer to
withdraw his capital from productive business and invest it in tax-exempt
securities or to find other lawful methods of avoiding the realization of
taxable income. The result is that the sources of taxation are drying up;
wealth is failing to carry its share of the tax burden; and capital is being
diverted into channels which yield neither revenue to the Government nor
profit to the people."

2) Kennedy tax cuts drove the top tax rates from 90% to 70%. Tax revenues
grew from 94B in 1961 to 153B (33% adjusted for inflation).

Kennedy quotation on the matter:

"Our true choice is not between tax reduction, on the one hand, and the
avoidance of large Federal deficits on the other. It is increasingly clear
that no matter what party is in power, so long as our national security
needs keep rising, an economy hampered by restrictive tax rates will never
produce enough revenues to balance our budget just as it will never produce
enough jobs or enough profits. In short, it is a paradoxical truth that tax
rates are too high today and tax revenues are too low and the soundest way
to raise the revenues in the long run is to cut the rates now."

3) Reagan tax cuts caused total tax revenues to rise 28% (inflation
adjusted) % during the from 1983 to 1989.

Kemp on the Reagan tax cuts:

"At some point, additional taxes so discourage the activity being taxed,
such as working or investing, that they yield less revenue rather than more.
There are, after all, two rates that yield the same amount of revenue: high
tax rates on low production, or low rates on high production."

JG



Josh Rosenbluth


.

Relevant Pages

  • Re: Why Do the Republicans Hate the Clintons so Much?
    ... Mellon tax cuts of the 1920's drove rates down from a max rate of 77% to 25%. ... Tax revenues as a function of ... It is increasingly clear that no matter what party is in power, so long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough revenues to balance our budget just as it will never produce enough jobs or enough profits. ...
    (soc.retirement)
  • Re: I predicted it would happen!!!
    ... to extend his tax cuts indefinitely, and to add new ones, would ... federal tax revenues are STILL below what they were ... The economy is booming, Ray, in spite of your depressing view of the ... growth, low unemployment, and rising wages. ...
    (rec.photo.digital)
  • Re: Why Do the Republicans Hate the Clintons so Much?
    ... "The history of taxation shows that taxes which are inherently excessive ... wealth is failing to carry its share of the tax burden; ... an economy hampered by restrictive tax rates ... will never produce enough revenues to balance our budget just as it will ...
    (soc.retirement)
  • Re: A cogent argument for "voodoo economics"....
    ... Government revenues are up 12.9 ... eight-month period last year--without any tax increases. ... growing economy, they send more to the federal government in ...
    (alt.politics.bush)
  • Re: NASA moon trip video
    ... The real answer is to get serious about cutting spending. ... several serious problems with Bush's tax cuts, ... let the government spend it. ... the whole economy to do better, ...
    (rec.arts.sf.tv.babylon5.moderated)
Loading