Wednesday, July 26, 2006

Federal Tax Cuts Contribute to Growth

Well the news is not good for big tax and spend liberals. Contained in the latest U.S. Treasury analysis of the Bush tax cuts is more evidence that most of the cuts were good for overall economic growth. Furthermore, the tax cuts that were the most effective at generating growth were those that liberals argue go to the wealthy. To see a copy of the report go to:

www.treas.gov/offices/tax-policy/

The Treasury analysis concludes that a permanent extension of the Bush tax cuts would produce a 2.3% increase in the nation’s capital stock. The study shows that the dividend tax cuts were the most effective in generating growth. The least effective tax cuts, according to the Treasury analysis, were the cuts at the lowest end of the income spectrum (the 10% bracket) and the child care credit.

The U.S. Treasury analysis should cause those who honestly questioned the wisdom of the tax cuts to reconsider their resistance. We need more analysis and less blather on the impact of tax cuts on the economy.

Ernie Goss

3 comments:

Anonymous said...

Big oil will make nearly 200 billion in profits this year. And to think some whiners believe they're gouging!

shawn said...

Liberals will only increase the size of government to provide safety for its citizens. JFK was the last "liberal" to be elected to the white house. He shrunk the size of the government during his presidency because the government was generating surpluses. The current government is running massive deficits. These deficits will have an impact on my generation as well as the younger generations beyond economic modeling comprehension.

My question is this. Do the republican government deficit spending benefits outweigh the current, and more important, future costs which we will have to bear?

On another matter. Anyone can borrow money from another and spend it, thus increasing GDP. Republicans are assuming the U.S. economy will generate returns of investment exceeding the borrowing cost. Just ask any credit card holder if this assumption holds true.

In closing, here are some comments made by both a republican and a democrat senator on meet the press. The democrat senator said we are for taxing citizens now for government programs. The republican senator said we are for taxing future generations for our present government programs. Both sides admitted to taxing citizens for government programs.

Ernie Goss said...

To Anonymous:
I agree that big oil profits are unseemingly as they benefit from the crisis in the Middle East. But unless we are willing to subsidize their profits when they are inordinately low, then we must accept these high levels.

To Shawn:
I believe that Republicans and Democrats are both engaging in the game of shifting costs from one generation to another. Over-spending is a problem for both Democrats and Republicans. It is certainly true that the only difference between the two parties is who bears the burden.