May 15, 2006
That this is even up for debate boggles the mind.
In January, George W. Bush declared that, "by cutting the taxes on the American people, this economy is strong, and the overall tax revenues have hit at record levels." Regrettably, this endorsement of what his dad called voodoo economics was not a one-time oversight. The next month, Bush told a New Hampshire audience, "You cut taxes and the tax revenues increase."
Bush is not alone in this. Dick Cheney, allegedly a serious person, asserted in February that the "tax cuts have translated into higher federal revenues."
Nonsense. The Laffer Curve has been proven time and time again by history.
Just search our archives.
Here's a great graph from TaxProf Blog.
While it is true, our deficits are higher than nearly ever before, it's not because of tax cuts. It's because of increased spending! Our President and Congress can't seem to agree on stopping the spending!Economics and Markets Posted by AlexC at May 15, 2006 12:22 PM