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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Whist who wrote (254962)	5/14/2002 6:43:39 PM
From: greenspirit	Read Replies (1) \| Respond to of 769670

I believe we should do away with all taxes with the exception of a national sales tax. If people saw what they were paying for in government services every time they purchased an item, they wouldn't be so inclined to accept the wasteful programs, and outright abuse which exists. In regard to my question. The answer is it depends of what kind of marginal tax you're reducing. In the case of capital gains tax reductions, the reduction effect has actually been shown to be a net positive revenue generation tool. Especially in the short term (1-3 years). In the case of national tax rates, it's an approximate 70% reduction in revenue. But that formula has many variables and assumptions which are difficult to measure accurately. And a direct correlation is not perfectly clear. The point I am making with all this is how disingenuous Democrats like Gephard and Dashle have been in trying to link tax breaks with deficits. One does not necessarily equate to another in a sort of simplistic economic vacuum. When Democrats start to understand these simple economic 101 realities, perhaps they won't be so easily swayed by the rhetorical spin foisted upon them from their leaders in the House and Senate.