Supply Side Economics Thoroughly Debunked

[Zynx]

Receipts outside the Social Security System

Clinton Years
Receipts 1993: $842 billion
Receipts 2001: $1.483 Trillion
Growth: 76%

Bush Jr. Years
Receipts 2001: $1.483 trillion
Expected 2009: $ 2.086 trillion
Growth: 40.6%

Reagan Years:
Receipts 1981: $469 billion
Receipts 1989: $727 billion
Growth: 55%

Source: U.S. Government Printing Office

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Now as we all know, the Republicans claim that tax cuts lead to such economic growth that you will have more revenue than you would have had without them. Without getting into the discussion of the GDP growth itself, let's cut the crap and go right to the government revenue which they are claiming is the end result. As we can see, the Clinton years had far faster revenue growth than either the Reagan years or Bush II. This is even though he had a lower inflation rate, a fact that normally constrains government revenue growth.

I am starting more detailed work on this subject as it relates to my Economics degree, but this is a very quick summary.

If I used revenues including the Social Security system, the results are pretty much the same, but I prefer to focus on the General Fund as that is where fiscal policy takes place.

[Zynx]

1. *Kick*...Larry Kudlow right in the nuts

[Jeff In Milwaukee]

2. Dig a little deeper...

You'll find that most of the "Reagan Years" increase in revenues came from tax increases passed in 1986. Even some Republicans (like a then-nearly-sane Bob Dole) supported the tax increases because the deficits were out of control. If Congress had passed Reagan's budgets as proposed, revenues would have been lower and the deficits would have been even bigger.

[Zynx]

3. Yeah I am going to dig through these numbers even deeper.

On the most superficial level it is bad enough for them.