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Politics : Bill Clinton Scandal - SANITY CHECK -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (29283)	1/22/1999 5:13:00 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 67261

What Reagan did was to increase the payroll taxes and cap them with a 60K or so income limit. So the "tax relief" for lower-income people was nothing short of illusory -- whatever they "gained" by the marginal rate cut, they lost every cent of it and then some, because of the inflated payroll tax.

To: DMaA who wrote (29283)	1/22/1999 5:17:00 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 67261

DMA, They are also more apt to put capital at risk if the tax rate is reduced. Remember how Reagan was constantly being vilified for trying to enact capital gains reduction by the DEMS as "tax breaks for the rich"? Well guess what, now that we finally have a modest cut, it's already producing greater tax revenue in total. Just like more people are willing to work harder if they can keep more of their money, they're also more willing to invest without being overly concerned about "tax consequences". bp