Report: Debt will swell under top GOP hopefuls’ tax plans

[mrjarrell]

Only one of the gop candidates' plans contains enough spending cuts to offset lost revenue from their proposed tax cuts. Guess which candidate. Go on. Guess. LOL. Even if one of them could beat Obama, they'd spend us into oblivion, just like him. Same old crap, different day.

Report: Debt will swell under top GOP hopefuls’ tax plans - The Washington Post

http://www.youtube.com/watch?v=rhhtRxqSrys

 

[dross]

Just as I suspected, static analysis.

First, they're assuming certain revenues. Second, they assume that a change in tax policy will produce the same revenues minus the reduced tax rate cuts.

The same tired crap that any first year student in Economics for Art Majors could deconstruct. Yawn.

 

[hooky]

Apparently, static analysis is king on both sides of the aisle. One side says I'll raise taxes by x and we'll get x because nothing will change. Now this saying we'll cut taxes by x and we'll lose x in revenue because nothing will change.

Historical results may not guarantee future performance, but it certainly is a very strong indicator.

 

[rphutchi]

Just as I suspected, static analysis.

First, they're assuming certain revenues. Second, they assume that a change in tax policy will produce the same revenues minus the reduced tax rate cuts.

The same tired crap that any first year student in Economics for Art Majors could deconstruct. Yawn.

Am assuming that you refer to the counter intuitive reality that lower taxes historically produce greater tax revenues. Which in the end highlights the fact that we have a SPENDING problem.

 

[mrjarrell]

Am assuming that you refer to the counter intuitive reality that lower taxes historically produce greater tax revenues. Which in the end highlights the fact that we have a SPENDING problem.

Indeed we do. And only one of the gop candidates has put forth a plan to get that problem under control. Of course, he's just a crazy old fart, so what does he know. Even if one of the 3 Stooges managed a win against Obama, they'd just continue the spending.

 

[jeremy]

I believe another Texan promised no new taxes as well...

Anyone remember how that worked out for him?!

 

[CulpeperMM]

spending needs to be cut radically. if spending was reduced to 2006 levels (can any one argue we didn't have enough government in 2006?) we could likely have a balanced budget, paying off the debt will require more spending cuts.

 

[Leo]

Since the Debt is already more than the entire economy, and the money is falling in buying power daily, we have already collapsed. Here is a prediction. Since all the money is tied together internationally, eventually every economic system in the would will fail when the float we are all on collapses. The crash will only take one hour.

 

[LockStocksAndBarrel]

Tax cuts increase total revenues because the generate economic activity.

 

[mrjarrell]

Tax cuts increase total revenues because the generate economic activity.

That's what conventional wisdom says. If it held true, tho the Bush tax cuts should have pulled us out of recession. Hmmm....still hasn't happened. We are past the point where tax cuts will do any good, by themselves, (no matter what arm chair economists would have us believe). The politicians MUST make substantial cuts in spending. None of the 3 Stooges have put forth anything that will address that 900 Lb gorilla. On the gop side only Paul has a plan to cut substantially. On the libertarian side, Johnson plans for 43% cuts to the budget. Without cuts, tax cuts alone are useless. The economy has gone too far in the wrong direction.

 

[hooky]

My beef isn't with your argument of cutting spending. That's the only way to rein it back in. My biggest beef is phrases like this:

Both men have proposed to sharply cut taxes but have not identified spending cuts sufficient to make up for the lost cash, the report said.

That's the static analysis part of it. It's proven that if you cut taxes, revenues rise. There is no "lost cash" to "make up for".

 

[J_Wales]

PACEM ORA PARA BELLUM

Hell is coming to breakfast ladies.

 

[dross]

Tax rate cuts don't automatically produce more revenue, it's just that they often have.

Spending must be cut, no doubt.

Here's the thing, though. Cutting taxes is always good, no matter the circumstances. It will always help the economy. It just won't solve the problem alone.

Eliminate capital gains and the corporate rate, cut the top rates, cut spending, and will all be - as my Grandad used to say, and I paraphrase - poopin' in high cotton.