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Originally Posted by aceventura3
Supply side economics works when lowering excessive tax rates and it also has the opposite affect when increasing tax rates.
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I'll stick with the findings of a
recent study (pdf) by the Congressional Budget Office in which the CBO estimated the extent to which a 10 percent reduction in personal taxes might pay for itself. The conclusions confirm that the free-lunch mantra is just plain wrong. O
n the most optimistic assumptions it, the CBO found that tax cuts would stimulate enough economic growth to replace 22 percent of lost revenue in the first five years and 32 percent in the second five. On pessimistic assumptions, the growth effects of tax cuts did nothing to offset revenue loss.
So..that means that from 68 to 78 percent of that lost revenue is not replaced in the best scenario and no lost revenue is replaced under the worst scenario....it is LOST...which explains in large part the huge increases in the national debt under Voodoo Economics I (Reagan) and VE II (Bush)....the two largest increases in the national debt in history!
Ironically, the director of the CBO at the time was Douglas Holtz-Eakin, who is now a senior economic policy advisor on the McCain campaign.
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I suggested several times that perhaps people like you and others go out and talk to people.
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ace, thanks for the advice
But for the record, I probably speak to more business leaders, local government officials and leaders of community-based organizations in a week than you do in a year.
And I dont call people with whom I disagree either liars or ignorant in any of those conversations.