Lotterman: The myth of tax cuts that pay for themselves poses a threat

[IDemo]

Don't believe the hype: Tax cuts mean reduced tax revenues

Self-paying tax cuts are a popular delusion, except among economists.

University of Michigan economist Joel Slemrod is adamant on one of the key economic issues of our day: "Tax cuts don't pay for themselves! Period!"

Hardly any economist would disagree. This is true for Republicans as well as Democrats. It is also true regardless of whether they describe themselves as NeoClassical, New Classical, Rational Expectations, Monetarist, Keynesian, Austrian or New Institutional economists.

But for a substantial portion of the general public, the idea that cutting tax rates will increase tax revenues has become an article of faith. The following anonymous comment to an online Associated Press story is typical: "The only way our government can create jobs is to cut taxes. It's been proven over and over again. Cutting taxes also increases government revenue."

http://www.idahostatesman.com/2010/03/19/1123039/the-myth-of-tax-cuts-that-pay.html

[drm604]

1. It's discouraging when Republican talking points become popular wisdom. n/t

[LiberalFighter]

2. We really need to get it out there that Republicans like to make up stuff.

[Doctor_J]

5. How? The media is owned, run, and staffed by right-wing Repukes

[sam sarrha]

3. here is what tax cuts really achieve,,,Link>> bottom 80% owns only 7% of Financial wealth...duh!

http://sociology.ucsc.edu/whorulesamerica/power/wealth.html

[whyverne]

4. This old saw reminds me of another one that should

be familiar to anyone who has had their own business. When friends, who have never had a business, advise you that you really should cut your prices. Because, don't you see, lower prices will attract more business and offset your losses.

If you fall for that one, you might as well start drawing up the bankruptcy papers now and save time later.

[dtotire]

6. What A Society Should Do

If a society wants to progress, and increase the quality of life for its citizens, it must invest in the following areas:

1. Education and job training.

2. Infrastructure, including roads, transportation systems, power, communications,etc.

3. Research and development, to keep abreast of other countries

4. Public health, anything to have a healthy populace

To make these investments, taxes are required, and we should support taxes to pay for them.


It should also have a neutral (or positive) balance-of-payments with other countries. When a country has a negative B.O.P.,its wealth is being transferred to foreigners, and the country becomes poorer as a result. The last time we had a neutral B.O.P. was during the Carter Administration. He made investments in alternative sources of energy, but these were cut back or eliminated during the Reagan administration.

[Union Yes]

7. The idiot Bush43 proved that tax cuts destroy revenue. Turned surpluses into deficits immediatly.