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Reply #86: Yes, we need to sto cutting taxes AND reduce spending because [View All]

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Home » Discuss » Archives » General Discussion: Presidential (Through Nov 2009) Donate to DU
googly Donating Member (801 posts) Send PM | Profile | Ignore Tue Feb-08-05 02:40 PM
Response to Reply #79
86. Yes, we need to sto cutting taxes AND reduce spending because
Edited on Tue Feb-08-05 02:41 PM by googly
every dollar that the government takes in and spends
does not create wealth, products or marketable services.
That kind of spending is just a drag on the wealth creating
entities. On the other hand, tax breaks given to wealth
creating entities increase the wealth in the country, part
of which can then be used to help the needy.

What many people fail to understand that the economy is not
a fixed sized pot. It is dynamic. If less profits are being
made, less taxes are being collected. A good example is when
Reagan reduced taxes, the US Treasury actully collected more
in taxes! The problem was we spent even more, so deficits got
larger.
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