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To: Peter J Hudson who wrote (91163)	1/4/2001 1:57:53 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 152472

Pete - ...Just think about the long lasting tax relief we will get when we pay off that huge national debt. You are the only person I have ever heard suggest such a thing was likely, as opposed to supporting new spending. In any case, speaking in a generally simplified manner, unless you know how interest rates will change in an unknowable future, all cash flows will use a single interest rate to discount those flows over time. This means that your future tax relief, when discounted to present value, will exactly be offset by the payments you make in the present to create it by paying off debt. Regards, Don

To: Peter J Hudson who wrote (91163)	1/4/2001 9:01:15 AM
From: Perry Ganz	Read Replies (3) \| Respond to of 152472

OT Peter Please educate me on what caused the growing budget deficits. Here is my 2 cents worth The deficits were caused by Reagan tax cut plus a buildup in military spending the cuts kept our economy afloat The buildup of the military destroyed the USSR, we arms raced them into bankruptcy. he kicked russia's ass without firing a shot Remember " Mr. Gorbachev, Tear down that wall" You don't say things like that from a position of weakness This lead us to the world peace we enjoy today unleashing free trade around the world and our booming economy. Our deficit is the greatest investment ever made and is paying dividends to the American people every day and has saved many, many lives I am going to quit now before I break into a corus of "America the Beautiful" Perry

To: Peter J Hudson who wrote (91163)	1/4/2001 12:37:31 PM
From: cfoe	Respond to of 152472

OT OTI don't know how we incurred the massive budget deficits of the 80's, but I'm pretty sure it had to do with the government spending more than it was taking in. Bingo!<ggg> You answered the question. A number of years ago (pre-my use of Internet)I did some library research on the fiscal numbers for the 80's. My memory is vague so take these parameters as not exact. Government revenues more than doubled in the face of the tax cuts, yet spending increases blew it away. The spending was both on defense (a Reagan/Republican priority) and expansion of social programs (Welfare, Medicare - Democratic priorities), as well as lots more. I don't want to go back there!</1> Neither do I! However, the answer is not to leave the money in the hands of politicians believing they will actually pay down the debt. Even Clinton acknowledged this in his statement last week about the increase in the surplus. He said that paying off the debt would happen unless some new government program(s) came into being, which you can bet your bippy it will. Just look at all the pork in the budget just recently passed. So to ensure no deficits in the future - cut taxes to INCREASE tax revenues and keep spending under control. In fact, if one's solution to the issues facing us is more government programs which mean more spending, then I suggest a tax cut (and prudent increases in spending) is the only way to ensure the needed revenues will be there! JMHO