Sunday, July 09, 2006

Liberal NY Times surprised on tax revenue, again

Once again the NY Times has been surprised, that tax revenues have increased with the reduction of taxes. Those of us who are Conservative to the core, are not surprised, we are of course, not shocked in the least. It is what always happens when you lower taxes, more money moves in the economy, more people are hired, more people buy more items, and more people are hired to build and transport the items.

In a brief history lesson to my Delusional friends who denounce all Conservative things, check on these numbers if you doubt me. Tax Revenue collected in 1980 roughly $500 Billion (Thousand Million) as opposed to the 1990 collection of roughly $1 Trillion (thousand thousand million) with demonstrable increases in collected revenues each year.

In 1980, plenty of Liberal professors with little or no idea how the real world works, penned many opinionated reports on how the Prohibitive Tax or too high tax, was not yet to the prohibitive level. Yet, history clearly shows the economy took off under the Reagan tax plan, what didn't kick in with it was responsible spending from Washington DC. That is a matter in which I believe both parties need much work. The Democrats were spending hog wild in the 1980's and early 1990's until the Republicans won control. Then spending was reduced, growth of Federal Programs was reduced, and balanced budges were on the horizon, although not yet reached.

Spending control is what is missing, Congress continues to spend like the money is water, and that needs changing, and I hope change is on the horizon. I don't think the Democrats have the intestinal fortitude to manage spending in a responsible manner as a party platform, yet I agree change is needed. As a history, many of the Democratic Party Leaders were not fiscally conservative when their party was in the majority. Frankly, they grew social programs like they were going to save the world. They didn't save the world, and I wonder what will have to happen before the Democrats admit defeat in the war on Poverty. You can't give money away forever folks.

From the NY Times Article: WASHINGTON, July 8 An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year, even though spending has climbed sharply because of the war in Iraq and the cost of hurricane relief.
On Tuesday, White House officials are expected to announce that the tax receipts will be about $250 billion above last year's levels and that the deficit will be about $100 billion less than what they projected six months ago. The rising tide in tax payments has been building for months, but the increased scale is surprising even seasoned budget analysts and making it easier for both the administration and Congress to finesse the big run-up in spending over the past year.
Tax revenues are climbing twice as fast as the administration predicted in February, so fast that the budget deficit could actually decline this year.


You see, taxes should be used to keep a balance between too rapid growth, or the problem of overemployment which means that businesses start a virtual bidding war to pay employees more, which is inflationary in nature for those of you without a modicum of common sense. The other side is underemployment where too large a percentage of the population is not employed, and thus not paying taxes. That is the delicate balance that is affected by so many factors it is impossible to describe in a fairly concise manner in a blog posting, however it works.

Reagan showed us it worked, Kennedy showed it worked, and now George W. Bush has shown it will work. Raise taxes, slow the economy, increase unemployment, and hello inevitable recession. Lower taxes, gas the economy, increase EMPLOYMENT, and increase growth of the Gross Domestic Product, and INCREASE TAX REVENUE COLLECTIONS.

It has worked every time is has been tried, higher taxes don't help the economy, they damage the economy, and see which party thinks the economy needs to be punished. It is the Democrats, who call for higher taxes.

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