Why do republicans lie about their whiz bang economics that screw the taxpayer?

Question

Tax cuts without a proportionate cut in spending creates a revenue shortfall. To fund this shortfall, the republicans borrow money. According to their theory, the revenue shortfall will eventually be eliminated by the increased revenue from an expanding economy created by the upper class spending more of their money.

The problem with this theory is US GDP has never grown fast enough to start paying off Republican created debt. - not once. Ever.

It's a pig in a poke folks - and the US taxpayer is the pig. You do the math.

Why do cons not understand the difference between the deficit, and debt? Try again.

Read the question again genius. I never said they weren't up did I? You miss the entire point. Even with the increase in revenue it isn't enough to overcome the increasing debt. It never has. Learn to read before making a fool of yourself.

I can't "admit" something I didn't say. Now you're backpedaling. The fact is there is no proof the Bush theory has ever worked, it's just a pie in the sky way of getting yokels to vote for them. When you can show evidence to the contrary let me know.

Answer 1

Agreed. The idiots on the board don't seem to understand that it doesn't matter how HIGH our tax revenue is if we keep flushing billions of dollars down the toilet with illegal wars, missle defense systems that don't work, new generations of nuclears weapons, unprecidented tax cuts for the highest 1% income bracket, tax cuts for oil businesses which rake in $10 BILLION a quarter. The list goes on and on. It's nothing but sheer selfishness to pass this debt onto our future generations. I hope all those credit card conservatives start getting REALLY FLUENT in Chinese.

Answer 2

Um, hey moron, tax revenue is UP. Or don't you believe the NY Times - are they part of the VRWC?? Bwahahaha!

http://www.nytimes.com/2005/07/13/business/13deficit.html?ei=5090&en=a410f8c74d4700a5&ex=1278907200&pagewanted=print

Who exactly voted thumbs down on this - you're demonstrating only that you don't know how to look up Treasury receipts on the web. This is what I can't stand about Liberals - this is not a matter of opinion, it's a matter of FACT.

There is
(a) what tax revenue was before the tax cuts
(b) what tax revenue was projected to be with the tax cuts
(c) what tax revenue was projected to be without the tax cuts and
(d) what tax revenue actually is after the tax cuts.

If (d) is the highest (which it is), and all other policy that affects economic growth is neutral or restrictive (which it is), then the tax cuts paid for themselves.

Period.

Should spending be cut? You bet. But the problem isn't on the tax side - if you get a $4K raise and your wife blows $5K at Foxwoods, your job isn't the problem.

And I know what you're going to say "well OK revenue was up but the economy was pumped Keynesian style by the deficit spending" but that's not true, hasn't been true for more than a few quarters since the early 1980s - as big as the deficit is, it's smaller than interest on foreign-held debt. Is that bad? Sure. But the badness isn't in the tax policy. The tax policy is just fine.

See if you'd said "Bush is hurting the economy by spending too much, even if his tax policies are good" then I'd be right there with ya - and so would most people with a basic grasp of economics and finance.

Now you admit revenue is up - that's admitting that the tax cuts aren't the problem. See, if revenue is up after the tax cuts that means raising tax rates won't necessarily raise tax revenue - - Bush '41 raised tax rates, and tax revenue in inflation-adjusted dollars FELL over 2%.

The debt is up because the deficit WAS up and had to be financed, and the deficit was up because Bush increased SPENDING faster than his tax RATE cuts increased tax REVENUE. Tax policy is fine - spending policy isn't.

Bush spends too much. That's a problem. The Democrats don't seem inclined to fix it - they seem inclined to roll back the tax cuts, which aren't the problem, so they can go back to punishing success. Their agenda has nothing to do with the debt or the deficit.

And this whole "upper class" thing - if you divide the country up into fifths by income the membership in each fifth turns over almost completely within a decade. There are permanent differences but most of them pale in comparison to temporary differences - the difference between my income now and my income when I was starting out is far greater than the differences in income among the people who started out at the same time I did. That's the rule, not the exception.

Answer 3

There is no such thing as a free ride.
When you increase government spending and lower taxes, you must borrow money to pay the bills. The effects of this government practice is devastating.
First you need an understanding of where dollars come from. The US government is authorized to issue $300 million in currency per year, which must be backed up by gold assets. This authorization goes back to the civil war.
Sometime around 1914, the Federal Reserve System, a system of private banks, was formed. It was formed because the currency the US could issue with its gold supply couldn't serve the growing economy. So private banks in the reserve system were authorized to issue Reserve Notes which in turn had to be backed up by assets the banks owned. This allowed the money supply to grow in proportion to the economy.
In 1971, the US government quit issuing currency, and the money supply was fed solely by Federal Reserve Notes. As these banks assets grew, they issued more notes. Everything is honkydory.
Now, the government comes along and starts tossing borrowed money that comes from the economies of foreign countries. These dollars are not backed up by any assets. They are backed up by dollars in the reserves of these foreign countries. So more dollars are put into circulation that are backed up by DOLLARS.
The result is a deluded dollar value. This creates inflation. During the last 6 years, Bush has pumped $9 trillion into the ecomony. This is about 26% of the US currency in circulation. How much have gas prices gone up in 6 years? You'll find it is about an equal %.
Inflation is an invisible form of taxation. When government increases spending, you either must pay higher taxes or higher prices for imported goods.

Answer 4

What shortfall?

We're spending like drunken sailors in the Congress, and our total tax revenues are STILL catching up to our spending!

Bill Clinton tried the spending cuts and all he got was slightly higher unemployment and the edge of a recession!

George Bush got 9-11, a 20% drop in the DOW, an expensive war, hurricanes in Florida and Louisiana, 13 million illegal immigrants draining resources, the housing bubble has been bursting for three years, jobs are going over to China by the millions, and yet, our economy is larger than any country has ever had in history and we're still growing faster than any other industrialized nation!

(Awww! I hope I didn't hurt your wittle feelings! Looks like someone's tax cuts WITHOUT proportionate spending cuts actually worked!)

Answer 5

You are correct when you say this: "Tax cuts without a proportionate cut in spending creates a revenue shortfall."

This is true in the short term only. Put money into the economy and there will be more money spent and thus more profit made. That profit is taxed.

The problem that makes liberals wrong on this is they look at the federal treasury as their own pocket books. Everything you say is true if you are the treasury. The problem is government cannot create wealth, only take it. Understand this and you will be welcomed as an economic conservative.

Answer 6

i'm so with you on that, and that i'm a economic conservative. only to break even to save jobs accessible for those human beings only entering the activity market, a minimum of 100 and fifty,000 jobs could be added to the commercial equipment each month. That determination became in reality income in a handful of months in the course of the Bush administration. residing in Ohio, I see the jobless price drying the state up. Of each and each of the manufacturering jobs lost remote places, 25% of them got here from Ohio on my own. for each a million production facility activity lost to the remote places labor market, 5 different non production facility jobs are lost. The activity creation record of this administration is only the top of the iceburg so some distance because the commercial decay led to by technique of this president.

Answer 7

What about the debt being cut in half over the last three years, despite an increase in spending? How do you explain that my friend. Though I agree there does come times when tax increases are necessary. There is no one solution, there are many to the same problem. Either way how would that hurt the American taxpayer.

Answer 8

Republicans not only are borrowng but are taking money from Veterans groups and small children to pay for the war and other programs preferred by neocons.

Oh but the main point and the thing they emphesize over and over is the tax cut. Once people wise up, they'll see the truth in it all. Not only were the

Answer 9

Have you seen Aaron Russo's documentary, called America, Freedom to Fascism???? This movie is very interesting, informative, and is all about income tax, the Federal Reserve, and the IRS, and how they all come to be!!!!!!

Answer 10

ArgleBargleWoogleBoo, I have now officially became one of your fans. What you said is absolutely true. I have also said that on YA several times. Tax cuts do not create more revenue. Just the opposite. It's not only common sense. It's been historically shown as you have pointed out. Good job !