Liberal elites ignore economic realities

Gipper

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Between 1921 and 1929, tax rates in the top brackets were cut from 73 percent to 24 percent. In other words, these were what the left likes to call "tax cuts for the rich."

What happened to federal revenues from income taxes over this same span of time? Income tax revenues rose more than 30 percent. What happened to the economy? Jobs increased, output rose, the unemployment rate fell and incomes rose. Because economic activity increased, the government received more income tax revenues. In short, these were tax cuts for the economy, even if the left likes to call them "tax cuts for the rich."

This was not the only time that things like this happened, nor was Andrew Mellon the only one who advocated tax rate cuts to increase tax revenues. John Maynard Keynes pointed out in 1933 that lowering the tax rates can increase tax revenues, if the tax rates are so high as to discourage economic activity.

President John F. Kennedy made the same argument in the 1960s — and tax revenues increased after the tax rates were cut during his administration. The same thing happened under Ronald Reagan during the 1980s. And it happened again under George W. Bush, whose tax rate cuts are scheduled to expire Dec. 31.

The rich actually paid more total taxes, and a higher percentage of all taxes, after the Bush tax rate cuts, because their incomes were rising with the rising economy.

Do the people who keep repeating the catch phrase, "tax cuts for the rich" not know this? Or are they depending on your not knowing it?


From The Detroit News: http://detnews.com/article/20101121...lites-ignore-economic-realities#ixzz15vqmxxFw

The Great Thomas Sowell shines the light of truth on liberalism and the cockroaches scatter.

But, why do the useful idiots fail to recognize the truth?
 
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