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He did lower taxes and it did stimulate the economy, tax revenues increased dramatically during the 80's - but predictably when politicians see a new dollar in revenue they think think they have the green light for two dollars of new spending and deficits did increase quite a bit in the 80's. It is not a correct to infer that lowering taxes automatically increases the deficit or reduces the amount of taxes collected. |
Reagan's defense spending also got the economy going. (on borrowed money)
I am skeptical that tax rates and tax revenues are inversely proportional. Sure if the rate was raised to 100% revenue would go down. |
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Tax rates and revenue are not inversely proportional - but many people do believe that higher tax rates will always result in greater revenues to the treasury. As you point out when rates are raised some people just say "why bother?" and they alter their behavior accordingly. The laffer curve attempts to quantify this trend http://en.wikipedia.org/wiki/Laffer_curve |
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Revnue in = revenue out. With no accounting games. And that's why I'll never be president. |
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Know what that makes it? "May the best orator win". Is that a particularly good idea? I don't think so. Hitler was a master orator and he sold his idea to the public. That is, until he got elected. |
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Maybe, just maybe, if politicians began speaking to the issues, instead of carefully crafted sound bites, the public would become educated in their listening. Naw. not going to happen, but I can dream. |
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As I can I. Briana Banks and Tera Patrick will be in bed with me tonight and Jenna will rape me at work before I go home. :D |
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