John F. Kennedy, Nov. 20, 1962, news conference:
“In short, it is a paradoxical truth that … the soundest way to raise the revenues in the long run is to cut the rates now … The purpose of cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy.”
From 2003 to 2006, Record Federal Tax Revenues outpaced GDP growth.
In the midst of the (dreaded, ill advised, destructive, wrong-headed, mean spirited, risky, misogynist, racist, elitist, yadda yadda yadda) Bush Tax Cuts, our federal government took in more money than population growth and GDP should have accounted for. Even worse, the IRS had record “takings” during the last 3 years of Republican Majority Rule in the House and Senate. Liberals hate to admit this, but up until Democrats won the House & Senate in 2006, the American economy was rolling along quite nicely.
John F. Kennedy, Sept. 18, 1963, radio and television address to the nation on tax-reduction bill:
“A tax cut means higher family income and higher business profits and a balanced federal budget. Every taxpayer and his family will have more money left over after taxes for a new car, a new home, new conveniences, education and investment. Every businessman can keep a higher percentage of his profits in his cash register or put it to work expanding or improving his business, and as the national income grows, the federal government will ultimately end up with more revenues.”
President Kennedy knew it. Congress knows it: Lower Taxes Mean More Money for EVERYONE.
When you lower the price of a thing, you increase people’s ability to consume it. When gasoline prices spiked to over $4.00 a gallon (a little over a year after the Democrats won majorities in the House and Senate, which is also when unemployment started to climb) we all stopped taking those Sunday drives. When the demand dropped and prices came back to relatively acceptable, we started driving again.
Taxes can best be described as a “cost on living”.
When taxes are low, we all have more money in our pockets to spend, and businesses the world over benefit from our desire to own their products. Corporate profits go up, more employees get hired to meet additional demand, and the Government’s take increases at every level.
John F. Kennedy, Jan. 24, 1963, special message to Congress on tax reduction and reform:
“The largest single barrier to full employment of our manpower and resources and to a higher rate of economic growth is the unrealistically heavy drag of federal income taxes on private purchasing power, initiative and incentive.”
Knowing this, why do you believe the Democrats seek to increase across-the-board tax rates, and repeal the Wildly Beneficial Bush Tax Cuts??
Their narrative is always the same, and a bold-faced lie: “We cannot afford these -fill in your favorite negative expletive- tax cuts. The RICH in this wonderful country are not paying their fair share!” This very wrongly presupposes that the money belongs to the government, and they’re benevolently allowing us to keep a little of it.
It also assumes that the rich pay less, as a percentage of their income, than the middle class does. There could not be a more backwards claim. The Top 50% income earners pay 97% of all income taxes. The Top 1% income earners pay 39% of all income taxes. Back in 1980, when the top marginal income tax rate was 70%, the Top 1% paid only 19% of all income taxes. Now that the top rate is 35%, they pay more than double that.
Democrats want to raise taxes when the economy is up. Unless the economy is down, when they say they need to raise taxes. The logic is the same: If things are going great for our country, the 1% are making more money so they should be required to pay more of the tax burden. If things are going like they have been since the Democrats won both Houses in 2006, which is to say “Terrible,” those greedy rich need to pay more in taxes so the Government can take care of all those poor people it’s created.
Higher taxes are NOT about raising more money. Higher taxes are about CONTROL, pure and simple.
President Obama and the Democrat Senators who write the tax code KNOW that. Listen to the people who are telling you its necessary to abolish the Bush Tax Cuts. They use nice sounding weasel-words words like “social justice,” “economic fairness” and the completely untrue but ever popular “FAIR SHARE!!”
Those concepts are always code for Social Engineering, which has forever been about a small number of Elitist, Ruling Class Socialists controlling what everyone else does, says, and thinks. They’ve tried it in Nazi (National Socialist) Germany, Soviet Socialist Russia, Communist China, and a host of other failed Eastern Block countries, which have all crumbled under their own weight.
Look at the country of Greece, today.
Her deeply held Socialist entitlement mentality has brought her economy to a standstill. Greece is so far in debt to pay for her burgeoning “economic fairness” programs, that she’s months past the point where Bankruptcy would help. Yet that is exactly the direction Barrack, Joe, Nancy and Harry want to take us in.
Excerpts from a letter by Peter R. Orszag, Director, CONGRESSIONAL BUDGET OFFICE.
May 18, 2007
The Honorable Kent Conrad
Committee on the Budget
“Total federal revenues grew by about $625 billion, or 35 percent, between fiscal year 2003 and fiscal year 2006.”
“Had revenues grown at the same rate as the overall economy between 2003 and 2006, federal receipts would have increased by only $373 billion. The other $252 billion of the actual increase in revenues represents growth in excess of GDP growth. As a result, receipts as a share of GDP rose from 16.5 percent in 2003 to 18.4 percent in 2006, an increase of 1.9 percentage points.”
“Roughly two-thirds of the increase of 1.5 percentage points in corporate income taxes relative to GDP can be attributed to increases in corporate profits…”
“… higher realizations of capital gains (including any effects associated with legislated reductions in tax rates) added 0.3 percentage points to the ratio of individual income tax revenues to GDP…”
” Revenues from both corporate and individual income taxes have continued to grow faster than GDP.”
John F. Kennedy, Jan. 17, 1963, annual budget message to the Congress, fiscal year 1964:
“Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government.”
Socialism never works. No matter how well spoken or handsome the guy selling it is. It didn’t work in NAZI Germany. It didn’t work in the USSR. It’s failing right before our eyes in Greece, and it WILL NOT WORK IN AMERICA.
If you want to see jobs and prosperity return to your communities, tell your local Liberal Elitist Elected Socialist Thief to go right ahead: Raise your taxes again, or cancel the Bush Tax Cuts. Then put the pointy-headed little snob on unemployment, come November.