The Barbarian
DP Veteran
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- Jan 16, 2011
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Re: Wisconsin Republicans vote to strip public worker collective bargaining rights wi
I'm going to wade in on this.... tax cuts are not an expense to the government, however, they immediately do reduce tax receipts
I think the argument should be do tax cuts tend to help growth, which in turn generates more tax receipts From what I have seen, they seem to, but I think that more depends on your political views more then anything else. It seems in the past that more often then not, we have had good growth after tax cuts. But that is difficult, if not impossible to prove, because you can't compare it to something that didn't happen ( the tax cuts not happening)
My personal opinion on this, is that our taxation system, is really a delicate thing. When tax rates are too high, people tend to hide money, (people in the upper incomes) and it restricts spending. Taxes that are too low, will force the government to have to cut programs that are no longer affordable (if there is to be a balanced budget) or operate at a deficit.
What has happened, is that since 1982 or 83, we basically have had a good time of things, I remember seeing a chart where tax revenue has risen nearly every single year since then, and our government has done nothing but overspend what they have taken in in every one of them years (maybe one when they hadn't) That's why I have said over and over, we don't have a taxation problem in this country we have a spending problem.
This would be akin to anyone here, working for 35 years, getting a raise every year, never saving a penny, and going further in debt every year, then losing your job, and blaming your boss because you are deep in debt, and have no savings.
I'm not going to play silly games here with you. What I said still stands - if you want to discuss this in detail, make a new thread.
Your question is answered in parts.
Revenue directly decreased after the tax cuts, not increased.
It increased later, as it always does in time because of two reasons:
A) an inflating dollar
B) an expanding workforce
I know you won't accept these because you do everything in nominal rather than real dollars, or my favorite "80's dollars", so I'm not expecting anything.
I'm going to wade in on this.... tax cuts are not an expense to the government, however, they immediately do reduce tax receipts
I think the argument should be do tax cuts tend to help growth, which in turn generates more tax receipts From what I have seen, they seem to, but I think that more depends on your political views more then anything else. It seems in the past that more often then not, we have had good growth after tax cuts. But that is difficult, if not impossible to prove, because you can't compare it to something that didn't happen ( the tax cuts not happening)
My personal opinion on this, is that our taxation system, is really a delicate thing. When tax rates are too high, people tend to hide money, (people in the upper incomes) and it restricts spending. Taxes that are too low, will force the government to have to cut programs that are no longer affordable (if there is to be a balanced budget) or operate at a deficit.
What has happened, is that since 1982 or 83, we basically have had a good time of things, I remember seeing a chart where tax revenue has risen nearly every single year since then, and our government has done nothing but overspend what they have taken in in every one of them years (maybe one when they hadn't) That's why I have said over and over, we don't have a taxation problem in this country we have a spending problem.
This would be akin to anyone here, working for 35 years, getting a raise every year, never saving a penny, and going further in debt every year, then losing your job, and blaming your boss because you are deep in debt, and have no savings.
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