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**dayclaccikere** · 07-26-2011, 01:57 AM

We've been through this before....many times before.

Since 1950 tax revenues have increased every year except 1992, 2002-2003 and 2009-2010. 1992 was a Clinton year, 2002-2003 was due to the crash after 9/11 and 2008-2010 was due to the crash of 2007. The most dramatic increase in tax revenues began in 2003....just after the implementation of the Bush tax cuts.

Here's the chart

1992 was a "Clinton Year"?
It was a good year for Clinton, he got elected president, but he didn't take office until 1993.

Tax revenues do go up most years, the economy grows most years, and government spending goes up most years.
But when huge deficits regularly follow tax cuts, then you need to consider that tax cuts produce deficits.
I know you are going to say the problem is spending, but the same people that passed the tax cuts, passed the spending.

They said that we were spending too much, that we needed to reduce the "cost of government", and their "heroic" stance was to spend more, and reduce the "cost of government" by borrowing record amounts so they could cut taxes and pretend they had done something.

So why not deal with reality?

The economy needs fixing, tax cuts didn't work, they didn't "grow the economy", the economy needs a big customer to spend it into prosperity, that's what happened in 1943-45 when over half the GDP was federal spending, when the national debt went to 125% of gdp.
But the economy got moving, money got flowing, and the economy could continue at a higher level even as federal spending was reduced.
Before that, timid levels of stimulus had produced small improvements, but the economy was stuck at a place where the economy was stable, but awful.
It needed to be kicked up to a higher level of GDP, and to stabilize at that higher level. That requires increased government spending, the alternative is to allow the country to grow out of the current situation with lower taxes and reduced government, and that process will work, it will probably take a couple of decades, but it will work.
I favor an aggressive approach that could get the economy back up to target levels in a few years. But that's me, the main problem I see with the conservative approach, is that it reduces the US to a second rate power probably forever, and cedes world dominance to China.

07-26-2011, 01:57 AM	#26
dayclaccikere Join Date Nov 2005 Posts 399 Senior Member	We've been through this before....many times before. Since 1950 tax revenues have increased every year except 1992, 2002-2003 and 2009-2010. 1992 was a Clinton year, 2002-2003 was due to the crash after 9/11 and 2008-2010 was due to the crash of 2007. The most dramatic increase in tax revenues began in 2003....just after the implementation of the Bush tax cuts. Here's the chart 1992 was a "Clinton Year"? It was a good year for Clinton, he got elected president, but he didn't take office until 1993. Tax revenues do go up most years, the economy grows most years, and government spending goes up most years. But when huge deficits regularly follow tax cuts, then you need to consider that tax cuts produce deficits. I know you are going to say the problem is spending, but the same people that passed the tax cuts, passed the spending. They said that we were spending too much, that we needed to reduce the "cost of government", and their "heroic" stance was to spend more, and reduce the "cost of government" by borrowing record amounts so they could cut taxes and pretend they had done something. So why not deal with reality? The economy needs fixing, tax cuts didn't work, they didn't "grow the economy", the economy needs a big customer to spend it into prosperity, that's what happened in 1943-45 when over half the GDP was federal spending, when the national debt went to 125% of gdp. But the economy got moving, money got flowing, and the economy could continue at a higher level even as federal spending was reduced. Before that, timid levels of stimulus had produced small improvements, but the economy was stuck at a place where the economy was stable, but awful. It needed to be kicked up to a higher level of GDP, and to stabilize at that higher level. That requires increased government spending, the alternative is to allow the country to grow out of the current situation with lower taxes and reduced government, and that process will work, it will probably take a couple of decades, but it will work. I favor an aggressive approach that could get the economy back up to target levels in a few years. But that's me, the main problem I see with the conservative approach, is that it reduces the US to a second rate power probably forever, and cedes world dominance to China.
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