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

To: TimF who wrote (614764)	6/3/2011 6:40:50 PM
From: i-node	Read Replies (2) \| Respond to of 1578427

>> They are positive for economic growth, but they won't prevent a financial crisis. And neither will they cause one.

To: TimF who wrote (614764)	6/3/2011 7:52:37 PM
From: Alighieri	Read Replies (1) \| Respond to of 1578427

Income tax revenue often goes down in a recession, more than the GDP goes down. And in this case the revenue went down with the recession (before the tax cut). It also went down sharply during the next recession (without any additional cut in tax rates). Enough talking points Tim...post some evidence. The payroll tax revenue (as shown by your link) also went down with the recessions, just not as much. (Which is also fairly normal, income taxes, esp. progressive income taxes, are more volatile then payroll taxes, broad sales taxes would be less volatile then either.) Wrong...read the table again. Income Taxes 2000 $1.004T 2001 $0.994T 2002 $0.858T (The recession is over now) 2003 $0.793T (Revenue drops again) 2004 $0.808T (Revenue begins to grow from the new 2002 tax base, slightly, following expected economic expansion) 2005 $0.927T (The recession is long since over) 2006 $1.043T (Back to roughly 2000 levels. It took 5+ years to get back to 2000 levels) Payroll Taxes 2000 $0.652T 2001 $0.693T 2002 $0.701T 2003 $0.713T 2004 $0.733T 2005 $0.794T 2006 $0.837T (2000 revenue represents 78% of 2006). More than 22% growth during the same time period...now I would expect some growth because income ceilings are also being raised during this time period, but not 22%+ Your story doesn't wash Tim. Al