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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (317479)	12/28/2006 5:53:32 PM
From: steve harris	Read Replies (2) \| Respond to of 1577893

You're boring me splitting hairs with your razor thin nuances. I debunked your inaccurate post with facts and links. You were wrong. Cheers

To: combjelly who wrote (317479)	12/29/2006 4:01:35 PM
From: TimF	Read Replies (1) \| Respond to of 1577893

Try to keep up Harris. It took 6 years to finally exceed the 2000 peak. If the tax cuts increased revenue, why did it take so long? 1 - Tax cuts can increase revenue over the very long run, even if they don't over the short run. If they increase growth, but if some of that growth is reduced because of indirect negative effects of the tax cuts (a road isn't built, more money is borrowed, etc.), the residual additional growth may take a long time (more like decades then years) to be large enough to make up for the lower rate. 2 - Message 23130284 said "The capital gains tax cut was expected to lose $3 billion to the Treasury – yet, has paid for itself at least 16 times over." - Note "capital gains cut", not "all tax cuts" or "income tax cuts". Capital gains cuts are particularly likely to increase investment. Also they have a short term effect of causing more gains to be realized. Assuming they aren't so low as to already have little effect, and assuming that you didn't just make a cut, or a new cut isn't anticipated immediately, the typical consequences of a capital gains cut would be to increase revenue in the short and long run, but in between they may reduce revenue. If capital gains taxes are high before the cut, then the additional realization of gains, and the additional economic growth may be large enough factors to have no in between period where tax revenue will be lower then if the cuts where not made.