Faith Based Economics
Regarding Bush and tax cuts, you cannot expect economic theory to support the tax cuts. You just have to Believe that the Administration's desperate attempt to rape the economy one last time before it dies is good for us all. This is what we call Faith Based Economics.
Anyway, Bush can't cut the capital gains tax, because (1) he wants tax cuts, (2) he has predicated those cuts on a projection of huge treasury surplus over the next ten years, and (3) the surplus projection is based on the huge surge in capital gains taxes in 1999. If he cut the capital gains tax, then he would have to refigure the projections, and you would find ZERO surplus. As a matter of fact, you find zero surplus anyway if you look at the U.S. Treasury's projections, which predicts a trillion dollars in increased debt over just the next five years. And if you just recomputed the capital gains tax revenues, with or without a cut, based on 2000 figures rather than 1999 figures, you will also see a rising debt rather than a surplus.
Which brings us back to Faith Based Economics. If you just have faith in Bush's puppetmasters, you will be able to overlook all of their fuzzy math. And you will Believe.
Dave |
