Monday, June 20, 2005

Tax Cuts Work!!!

I've stopped watching Hardball with Chris Matthews. Not because it's not a good show, or I have anything particularly against Chris, who amuses me with his what-the-hell-no-one-is-watching-anyway manner, but because I have this problem. You see, it seems every time there's a lefty pinko pundit on there, they talk about how the Bush administration is running the economy into the ground and charging up a huge deficit - okay so far - but then their explanation for the root cause of this is irresponsible tax cuts for the rich. This is the genesis of the problem. Upon hearing this, I become so furiously frustrated with the idiocy of people who actually hold power in this country that I take my trusty old Pedro Guerrero Louisville Slugger to my television... repeatedly.

I'll grant you that due to the great benefits of globalization, televisions cost significantly less than what they once did, but this is nevertheless far too expensive to have occurring on a regular basis. Hence I have removed the problem from my life and begun watching Tivo'd episodes of
Mythbusters during the 11 o'clock hour (by the way, don't tell my wife, but Kari is just dreamy).

Anyways, the results are coming in, and low and behold it sure as hell seems that when we cut taxes, revenues go up.
Check out the op ed in yesterday's Wall Street Journal:

Now we have overpowering confirming evidence from the Bush tax cuts of May 2003. The jewel of the Bush economic plan was the reduction in tax rates on dividends from 39.6% to 15% and on capital gains from 20% to 15%. These sharp cuts in the double tax on capital investment were intended to reverse the 2000-01 stock market crash, which had liquidated some $6 trillion in American household wealth, and to inspire a revival in business capital investment, which had also collapsed during the recession. The tax cuts were narrowly enacted despite the usual indignant primal screams from the greed and envy lobby about "tax cuts for the super rich."
Earlier this month the Congressional Budget Office released its latest report on tax revenue collections. The numbers are an eye-popping vindication of the Laffer Curve and the Bush tax cut's real economic value. Federal tax revenues surged in the first eight months of this fiscal year by $187 billion. This represents a 15.4% rise in federal tax receipts over 2004. Individual and corporate income tax receipts have exploded like a cap let off a geyser, up 30% in the two years since the tax cut. Once again, tax rate cuts have created a virtuous chain reaction of higher economic growth, more jobs, higher corporate profits, and finally more tax receipts.


Blogger loki said...

The Wall Street Journal? Isn't that the magazine for the rich and wealthy? You'll have to do better than that. What did Paul Krugman have to say?

9:57 PM  
Blogger rox_publius said...

i'm not sure, but i heard something about "all lies" and "capitalist pigs"...

4:23 PM  

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