Help me dispel the tax cut myth please...(know any links that would help?)?

Question

oh william c. you know....if I need to explain to you what tax cut myth means...then you had better abstain.

the tax proponents say that tax cuts help raise more govt revenue and balance budgets and create surpluses...and make us all richer as citizens.

I want links, or news articles or web sites with statistics that dispel that myth.

or if you want to make a good intellectual argument feel free to do so as well.

Answer 1

It's a myth because the logical result of cutting of the taxes to 0% would result in infinite revenue. Voodoo economics!

Answer 2

It would help if you would describe what you think the tax cut myth is. If you think that the myth is that cutting taxes increases tax revenues, that's not a myth -- that's a fact. The cut in the capital gains tax rates a few years ago increased capital gains tax collections by 50%, from $50 billion to $80 billion a year.

Answer 3

http://answers.yahoo.com/question/index;_ylt=AgvO9Ac7bh2Iu4GBibqjHG3ty6IX;_ylv=3?qid=20071219111324AAJs4Mt&show=7#profile-info-9AO9TdTbaa

Sure, I'll bite. Here are the FACTS that I gave you yesterday when you asked the same question:


Since 1900, the U.S. government has implemented three major tax cuts.

Coolidge did it in the 1920's; Kennedy in the 1960's; and Reagan in the 1980's.

The results:

Following Coolidge's cuts of two-thirds, tax receipts nearly doubled.

Following Kennedy's cuts, tax receipts more than doubled.

Following Reagan's cuts of one-third, tax receipts more than doubled, from $517 billion to $1.035 trillion by 1990. That's an average yearly increase of 7 percent.

Each time, America's richest citizens actually paid more in taxes, even though their marginal tax rates were reduced.

Are you scratching your head?

How can revenues increase when rates decrease?? This seems to defy all laws of economics, if not physics.

Here's how.

Cutting taxes restores the incentives for work, saving, and investment. Instead of government gobbling up your money you have the freedom to use it as you see fit. This freedom encourages people to work more, save more and invest more.

The additional capital in the private sector produces more jobs and higher productivity. The additional economic activity produces more tax revenue.

Historically, tax rate reductions have stimulated economic rallies and created new wealth across the board.

More recenty the truth has been proved at both state and federal levels, including by President Bush's 2003 tax cuts on income, capital gains and dividends. Those reductions have raised federal tax receipts by $785 billion, the largest four-year revenue increase in U.S. history. In fiscal 2007, which ended last month, the government took in 6.7% more tax revenues than in 2006.

These increases in tax revenue have substantially reduced the federal budget deficits. In 2004 the deficit was $413 billion, or 3.5% of gross domestic product. It narrowed to $318 billion in 2005, $248 billion in 2006 and $163 billion in 2007. That last figure is just 1.2% of GDP, which is half of the average of the past 50 years.

Got it now?

Answer 4

Which side of the tax cut myth are you trying to dispel?

That they actually raise income and help the economy, or the federal government revenue is hurt and they only favor the rich?

Both sides have arguments!!

Answer 5

The best way to learn about tax changes from year to year is to get it straight out of the horse's mouth.

www.irs.gov
forms and publications link
previous years link
(pick a year--Bush was the dictator from 2001-2007)
publication 17 (towards the bottom of the list of forms)

These are usually pdf files. All of the changes for the year are in the front cover.

Just go down the list and ask yourself for each change, "who benefits?" It doesn't take a genius tax preparer to do it.

Example: child tax credit was increased from $400 to $1000.
Who benefits? families with children.

(But since the child tax credit phases out, the only people who benefit are poor and middle class with children.)

Look. Liberals are not embarrassed to lie about their country, and we all know now that they sit around all day waiting for someone to slander America and they believe every word they year of it as if their souls were empty without it.

Why is it no surprise to you that they simply perpetuate the "tax cuts for the rich" mantra without knowing anything about it?

Answer 6

www.irs.gov find the Publication 17 for each year. All the tax changes for that year are listed inside the front cover.

Look at each change and ask yourself "who benefits?"

Judge for yourself.

Charles, but only one side is a myth...that they only help the rich and reduce revenues. That is simply a myth.

itsyourw...ARE YOU KIDDING US? Non-Partisan? That is hillarious. Read the site and decide for yourself if it does not have a 100% liberal agenda. NON PARTISAN. Thanks for the laugh.

Answer 7

I don't know what myth you're talking about, but Citizens for Tax Justice is a non-partisan website that deals with all issues tax related.

Answer 8

If you told us what myth you wanted help with it might help!!