Bush pokes fun at himself

[Pepper]

Nothing sad about it. Try checking out the background of the Heritage Foundation for starters.

Huh? What does the HF have to do with whether I stick to the conservative "mantra?" Try to pay attention.

 

[kbm8795]

Such short sentences. Someone need a hug?

If I had written the sentence you posted, I'd need one. . .

 

[kbm8795]

Huh? What does the HF have to do with whether I stick to the conservative "mantra?" Try to pay attention.

If you don't know the foundation of your own sources, how the hell are you capable of determining if something is "conservative" or "liberal" in the first place?

 

[Decker]

What about CATO? http://www.cato.org/pubs/pas/pa-261.html
and before you point it out:
and

CATO is generally as bad as the Heritage Foundation although once in a while a true libertarian pops his head out.

I think we got nowhere comparing charts so I???m taking a different tact. We were both right: Decker???tax revenues decreased b/c of Reagan???s tax cuts; Pepper---tax revenues increased b/c of the cuts. But ultimately I am correct and here???s why.


In 1981, Reagan slashed marginal rates. Tax revenues decreased significantly until 1984 where they reach their Pre-tax cut level:

Total Federal Tax Collections (billions)
Year Nominal Constant (87 dollars)
---------------------------------------
1980 $517.1 ......$728.1
1981 599.3 ........766.6 < tax cut passed
1982 617.8 ........738.2 < drop (tax hikes)
1983 600.6 ........684.3 < drop (tax hike)
1984 666.6 ........730.4 (tax hike)
1985 734.1 ........776.6 < (tax hike)
1986 769.1 ........790.0 (tax hike)
1987 854.1 ........854.1 (tax hike)
1988 909.0 ........877.3
1989 990.7 ........916.2
1990 1031.3 ......914.1
1991 1054.3 ......894.7
1992 1090.5 ......895.1
Source IRS

Why did the Tax revenues go up?
Reagan raised taxes 2 TIMES in 1982: TEFRA (37.5 billion per year) and the Highway Revenue act (3.3 billion per year). The TEFRA increase is the largest peace time tax increase in history increasing revenue by about 1% of GDP.

Reagan raised taxes again in 1983 by raising the payroll tax rate.

Reagan raised taxes again in 1984???The Deficit Reduction Act???which raised taxes $18 billion per year or .4% of GDP

Reagan raised taxes again in 1985 under the Consolidated Omnibus Reconciliation Act of 1985.

Reagan raised taxes again in 1986 under the Tax Reform Act.

Reagan raised taxes again in 1987 under Omnibus Reconciliation Act of 1987.Source: http://www.nationalreview.com/nrof_bartlett/bartlett200310290853.asp

See Pepper, tax cuts have never paid for themselves. You are correct saying that tax revenue increased but it was due to tax increases and not tax cuts. I was correct to say that tax revenues went down in the 1980s b/c they did until the tax hikes were implemented.Even with the tax hikes, the rate of tax revenue growth during the 1980s was almost nil and about 3 times less than the growth of other decades. Let us not forget the excessive borrowing and deficits of the Reagan era either. Tax cuts do generally stimulate the economy but they have never paid for themselves i.e., increased tax revenue.

 

[BigDyl]

If I had written the sentence you posted, I'd need one. . .

 

[Decker]

Decker, I have been looking for something that would consider the impact of the FICA tax increase but can't find it. I am not sure a FICA tax increase can be blamed on the republicans as this is a democratic beast from the get-go..but I digress.

I see what you mean. This will undercut me but I think Reagan got it right pre-funding the possible SS shortfall w/ the tax hike. He was right but for the wrong reason. He knew that, under a unified budget, those payroll tax dollars would fund other programs deprived of money by his excessive tax cuts.