Why Don't Liberals Understand That Lower Taxes Creates More Tax Revenue?

Question

Lower taxes lead to greater production- and an increase in the total "pie."

15% of a 100 pie is WORSE than 10% of a 500 pie.

But you can only get to the 500 pie by allowing businesses more money for reinvestment and research, this money becomes available when taxes are decreased.

Is it that Liberals don't understand economics?

Why in the world would anyone think that the key to ending the deficit is to "raise taxes" when doing so decreases the amount of tax revenue the government receives?

Wednesday, August 10, 2005


WASHINGTON — A record amount of tax revenue flowed into federal coffers in July, helping to keep the government on track to significantly lower the budget deficit this year.

The Treasury Department reported Wednesday that revenue collections jumped 5.7 percent last month from a year ago, pushing total receipts to $142.09 billion, the largest amount ever collected by the federal government in the month of July.

Rizzo- I'm not sure your data on Clinton is right...how could the economy have grown under Clinton for 116 "consecutive months" when thats a little over 9.5 years and Clinton was only president for 8?

Answer 1

Liberals have a shallow intellectual level which inhibits their cognitive skills.

Even JFK, the liberals' god of choice, knew that lowering taxes increases revenue.

I should add that lowering taxes, even for just the rich would not really have the detrimental effect on the poor and middle class that the left thinks. Most of the poor pay little or no taxes anyway.
And the top 10 percent pay more than 62 percent of the federal income taxes (that's those earning $75,000 or more); the top five percent of wage earners ($121,000 or more) pay 55 percent of total income taxes. This would not change much with tax cuts, especially if the cuts are spread evenly over the taxpaying population, as they were in 2001.

Put the liberals in charge, and you'll see revenues drop dramatically, inflation go up, and the onset of recession which will actually make the poor suffer--and all due to the silly notion that raising taxes will improve the economy.

I feel I should add that the economic recovery of the 1990s, and the so-called budget "surplus," was the result of liberal smoke and mirrors tactics; there was no real surplus only the appearance of one created by adding the Social Security "surplus" (which was itself largely an illusion) to the budget. By the time Clinton left office, the weak McRecovery he and his cohorts engineered was beginning to crumble, leading ultimately to the recession of 2001-02--a recession which ended when the Bush tax cuts began to take effect.

Answer 2

Tax receipts have increased a tiny bit because productivity has been up. Businesses are not putting the money back into the economy -- look at the the declining investment figure. They're relocating, outsourcing to other countries and importing more goods. Trickle down theory was disproved a long time ago; even Reagan abandoned it. Economics is not all counterintuitive, there's no way taxing at a lower rate brings in MORE revenue.

Answer 3

that's a concept and it extremely works, yet no longer even as your authorities is spending those sales resign fist. the answer to our deficit isn't to diminish taxes better, that's to lessen the spending that has been out of control in the course of the bush admin. responsibility on each and every aspect of the isle. If we did not pay any federal taxes in any respect what do you imagine your state tax, or authentic belongings taxes might want to might want to be. the money has to go back from someplace. Did we extremely elect the dep. of native land protection, or might want to we've made the different dept's already widely used better in charge for the protection of our united states of america.

Answer 4

They do understand that. Thats why they want lower taxes for lower to middle income people who have a higher tendency to spend more if not all of their disposeable income. Liberals are opposed to corporate tax cuts. I think it may be you who does'nt understand economics. Coporate profits are less likely to be infused into the economy than tax cuts given to the lower 95% of American workers. Give workers tax cuts and they spend the extra money which expands the economy. Give it to the rich and they get richer. If GOP style economics makes sense why do the majority of their tax cuts benefit only the top %2-5? Why is the disparity between the rich the rest of us is getting bigger and why have middle class wages, when adjusted for inflation and the CPI have actually decreased in the past 5 years? Why don't you check since you have a masters in economics, oh wait, thats me... I'll check for you. Furthermore, studies show that reducing taxes GOP style is less effective at increasing governemt tax coffers than maintaining tax rates, thus the steady trend toward deficit thanks to GOP. This is why reducing corporate taxes and reducig taxes for the rich, ie, "trickle down theory", is also known as "voodoo economics".
F.U.C.K Bush and stop being RIGHT!!

Answer 5

OH let's see the question should actually be do you want to get screwed and know your getting screw or would you prefer not to see it coming or where it's going?
Yep they did a great job lowering Fedral taxes. NOW NOW that's a fact! here is another fact for you. They also cut back on funding of education (after upping the standard). Forcing local and state government to increase thier taxes.
Here is another tid bit for you A republican governor tried to pass a law to increase taxes. How was he going to do it with out it coming off like they were increasing taxes? WELL low and behold by adding more increasing the taxes on the electric.
One way or another your paying taxes it's just do you want to see it coming or would you rather believe you were not?

Answer 6

So what you're saying is, the huge deficit will magically disappear. You won't have to raise taxes to pay off all the debt this administration had made for us, the American people.

How does it go, abra cadabra. Now it's all gone. You were right!

Answer 7

During the 80s, we had Regan and Bush (I). Fiscal "conservatives," and our country went fiscally down the tubes with what we THOUGHT would be the HIGHEST debt the US would see. Boy were we wrong: enter another fiscal conservative: MORE national debt.

Hmmm. Your equation sounds good, but I think your Pie Theory needs some fine-tuning.

Answer 8

You have to remember that you are talking about the same group that thinks you can reason and negotiate with madmen that will blow themselves up just to kill a baby or two, that Bush is a bigger threat to the world than the North Korean or Iranian dictators, and think they are the only ones that should have deviates, thieves, liars and criminals in their party and are amazed when one or two of them show up in the Republican party. Do you actually think they could understand this simple concept?

Answer 9

Because they think they know how to spend your money better than you do. They don't want anyone to start a new business and succeed, they want you to stay poor so you have to rely on their charity to get by.
They know what's good for you, you're too stupid to know or make an intelligent decision.
That's why they want to ban trans-fat, smoking, over-eating, guns, marriage, families, basically anything that THEY don't like.
It's all about them being in CONTROL of EVERYTHING.
Independent thinkers are their biggest challenge, how are they ever going to push through the 'euthanasia for brain holders' bill?

Answer 10

That is because most liberals haven't taken basic economics courses. I had a professor for my economics course who, the first day of class, had us take a survey about our economic and political beliefs. Then on the last day, he had us retake the survey to see how answers changed. After only one semester of economics, most of the class shifted their views towards conversative economic theory.

Less taxes means more money to the people to spend. This results in more jobs and more production, and therefore more money going around. And the more money is going around, the more the government gets to tax, by in fact, taxing less. People spend more instead of save more and then eventually the economy shifts to equilibrium, gold will rain down from the heavens and people will smile.