To: justmickey who wrote (69330 ) 11/2/2000 12:16:53 PM From: Mr. Darcy Read Replies (1) | Respond to of 150070 Re:Tax cuts for "Bush's rich Buddies" causing inflation leading to rate increases and tanking markets.Rebuttal: (sigh...) Markets do not tank because of an infusion of capital (read "tax cuts" for that is where most of the earnings go when cutting marginal rates). More money in the bond market means that borrowers need not chase dollars, leading to lower rates and generally a better market environment overall. Tax cuts also create greater demand for stocks as an investment and more capital for new business creation.Again, a plus for the market. As to the Fed's fight, many believe it's being over aggressive in its fight against a pip-squeak enemy (inflation) dressed up in a scary costume of high oil prices.Most of our inflationary warning indexes agree with this assessment. Also, Mr. Greenspan's level of comfort with economic expansion may be far too conservative. Not to mention that the Chairman is finally starting to agree (after some chiding) that determining the markets fair value is not his decision to make. Tax cuts increase savings,investment and raise productivity and growth. By dropping top rate to 33% from 40% upper end taxpayers take home $.67 rather than .60 on each dollar earned, a 12% incentive for saving and investing.This has a large impact on overall growth and a larger GDP leads to a larger tax revenue.This is the golden way to go after the evil,top-hatted,lotus eating top 1% of earners...as they pay more actual dollars in the long run.. Lower tax rates generate additional tax revenue as the economy expands more quickly. Gov. Bush's economic philosophy show's that he clearly understands both the harm of progressive tax rates and the unintended negative consequences of punishing working capital.But has he been able to explain this to the public?Probably not. Besides,beating Santa Claus in an election will always be difficult. Let me end my blathering with: Harry Brown in 2000!!! Go cat, go!