View Full Version : It's the Tax Revenue, Stupid

03-30-2011, 02:09 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> It's the Tax Revenue, Stupid

Call it the "Seriousness Test." Any so-called deficit hawk that refuses to countenance increasing federal taxes simply isn't serious. After all, as the CBO concluded in January, with tax revenues now below 15%, "levels that low have not been seen since 1950." The two-year tax cut compromise in December made matters worse, adding $400 billion to the deficit this year and next. And measured as a percentage of GDP, corporate profits are near their highest point in the last thirty years, while corporate tax revenue is at its lowest since Truman was in the White House.

Nevertheless, as Tuesday's glowing Washington Post profile of the Senate's "Gang of Six" deficit cutters made clear, for Republicans everything is on the table - except, that is, raising taxes. </div></div>


<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Consider the graph above of U.S. tax revenue and spending as reflected in President Obama's proposed $3.7 trillion budget for fiscal year 2012. In one sense, it looks exactly as you'd expect.<span style='font-size: 14pt'> The combination of the Treasury-draining Bush tax cuts and crippling Bush recession sent tax revenues as a percentage of GDP to its lowest point since 1950.</span> Meanwhile, the cost of the two unfunded wars and badly needed funding to boost demand during the current recession sent spending temporarily well above its historical 18% to 22% range. With the stimulus nearing its end and the conflicts in Iraq and Afghanistan winding down, federal spending will begin coming down.

<span style='font-size: 14pt'>But the chart also highlights the fraud of Republican mythology which pretends that tax cuts pay for themselves.</span> As a percentage of the American economy, tax revenues peaked in 2000; that is, before the Bush tax cuts of 2001 and 2003. Despite President Bush's bogus claim that "You cut taxes and the tax revenues increase," Uncle Sam's cash flow from individual income taxes did not return to its pre-dot com bust level until 2006. (Past analyses from the Center on Budget and Policies Priorities revealed that the Bush tax cuts accounted for half of the deficits during his tenure, and if made permanent, would add more to the national debt than Iraq, Afghanistan, the stimulus and TARP - combined.) </div></div>

read on (http://www.perrspectives.com/blog/archives/002120.htm)


Gayle in MD
03-30-2011, 02:57 AM
Excellent post. Thanks.

03-30-2011, 07:44 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The two-year tax cut compromise in December made matters worse, adding $400 billion to the deficit this year and next.</div></div>So Obama is playing a large role in dooming the US?