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

To: Road Walker who wrote (512988)	9/15/2009 11:22:39 AM
From: i-node	Read Replies (1) \| Respond to of 1576177

>> Why do deficits balloon every time we cut taxes.. First, you have to comprehend that a deficit is made up of two basic components -- revenue and expenditures. If you increase revenue (which tax cuts CONSISTENTLY have done), it will reduce the deficit ONLY if you DON'T increase spending. Does that make sense to you? This result has been very consistent. For example, in 2003 Bush cut the capital gains rates, and the result was a DOUBLING in revenue from capital gains taxes. The '97 cuts which the Republicans forced on Clinton were directly responsible for the growth that became known as the "dot com" bubble. This happened because of cap gain tax cuts which made the formation of venture capital possible. Amongst other things. It is astonishing to me that some people still think that tax increases do anything other than gut economic potential. It is like clockwork - you cut taxes, the economy surges. You increase taxes, the economy flattens.