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Originally Posted by ratbastid
I don't have an MBA or anything, but that just doesn't follow. How do they tie that apple to that orange, exactly?
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The federal government is collecting more tax dollars than at any other time in our history. They are also spending more. Increased tax dollars collected are related to a number of factors, one being general economic growth. The reason people make an issue of increased tax dollars being collected is to illustrate how tax rate cuts can in fact not only stimulate the economy but to actually lead to more taxes being collected.
When tax rates are too high, people are going to do things to avoid paying the higher tax rate. Ideally, there is a perfect tax rate somewhere between 100% and 0% of income where there is equilibrium and government will maximize tax collection on income or any other form of taxation.
Our government is currently acting like a household that spends more money than they make (deficit spending) adding to total debt. Short of printing money to eliminate the debt, the debt won't be reduced until the government starts creating budget surpluses. The Clinton administration had achieved this, but it was rally an illusion because of social security and as Host points out off budget items.
This issue is bigger the one President and right now people want to blame Bush, but the reality is that it is more complicated than that. But blaming Bush makes good headlines and is good for political talk shows, but ignores the real issues we face.