Posted on 09/15/2017 3:41:53 PM PDT by Kaslin
In these days of controversy and political wrangling, we seem to forget that America’s woes from an economic standpoint stem from eight straight years of GDP growth hovering around an average of 2.1 percent.
Yes, the United States’ economy is still the largest in the world, but when we look at the past two decades, America’s growth rate has dropped dramatically. In the 1950s and ’60s, the average growth rate was about 4 percent. In the ’70s and ’80s, that dropped to around 3 percent. In the past ten years, it’s been around 2 percent.
Since the second quarter of 2000, GDP has never reached the 5 percent level. In fact, the last time GDP surpassed 3 percent was in 2005 when it reached 3.3 percent—and that was the year of Hurricane Katrina when rebuilding from the storms helped spur the economy.
I have never been—and am not likely to ever be—one to defend the federal government or Congress for its irresponsible spending, lack of accountability and inability to develop any real fiscal policy.
But the fact is that America’s current $20 trillion debt will look like a walk in the park compared to where it’s heading for the next generation. Our deficit cannot be fixed until we get on a consistently better path to GDP growth averaging a minimum of 2.8 percent, along with trimming the size of government.
Around 2.6 percent GDP is the break-even figure that will allow us to maintain a do-nothing, crummy economy. Our economy is dependent on 3 percent growth to continue to thrive and to keep the national debt manageable and to move in a downward trajectory. We have reached the point where it’s become critically important that, as far as economic growth goes, we at least get back to the 1970s and ’80s. We cannot focus on debt without addressing one of the causes—the deadly combination of no growth and a bloated government.
It’s been 12 years since America has had the opportunity to prosper economically. We are now facing a golden opportunity to climb back up on the road to prosperity. This is not a political party issue. It shouldn’t be about Democrats and Republicans fighting for their pet projects or the lobbyists. None of that will lead to prosperity for anyone but politicians.
No, this situation is all about America’s will and determination. There must be a desire to do whatever is necessary to get us at least back to the growth rates of the ’70s and ’80s. There must be a desire to see America growing and maintaining her economic power. Unfortunately, we have reached the place where America’s prosperity and best years are behind us. Making the turnaround even harder is the fact that we must depend on the same dysfunctional government on Capitol Hill that got us to where we are today. Scary.
This isn’t about Republicans or Democrats. This is about a president who partnered with some of the greatest economic minds to put together the beginnings of prosperity and growth. It all starts with tax reform.
This soon-to-come tax reform plan will be the cornerstone of everything positive that happens in this economy as we move forward through the next decade. As long as Congress is only trying to satisfy their favorite lobbyist, the American people will continue to suffer.
Sure, politicians have justified in their own minds that they know what’s best for the American people. And I understand it’s difficult for them to wrap their arms around the notion that a pro-growth environment is what’s best for American workers, jobs, wages, and prosperity of future generations.
However, they must embrace the reality that a pro-growth environment will mean a pro-GDP environment for America. And that will be a major, positive step to finally begin addressing our out-of-control, ever-mounting deficit.
We still need vigilance on the part of voters and our congressional “leaders.” The latter certainly will have to do their part to keep a commitment to limited government, sound fiscal policies and the development of real budgets. Meanwhile, American voters must be more committed than ever to hold our lawmakers accountable.
We cannot continue to separate GDP growth from the crucial conversations about lowering our national debt. This is vital lesson we must learn.
Gee, where have I heard this before?
John F. Kennedy on Taxes
From The Interesting History of Income Tax, by William J. Federer
For immediate release. For more information, call 314-487-2004 or visit www.Federer04.org
It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now…Cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus. November 20, 1962, the President’s news conference
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. January 17, 1963, Annual Budget Message to the Congress, Fiscal Year 1964
In today’s economy, fiscal prudence and responsibility call for tax reduction even if it temporarily enlarges the Federal deficit—why reducing taxes is the best way open to us to increase revenues. January 21, 1963, Annual Message to the Congress: The Economic Report of the President
It is no contradiction—the most important single thing we can do to stimulate investment in today’s economy is to raise consumption by major reduction of individual income tax rates. January 21, 1963, Annual Message to the Congress: The Economic Report of the President
Our tax system still siphons out of the private economy too large a share of personal and business purchasing power and reduces the incentive for risk, investment and effort-thereby aborting our recoveries and stifling our national growth rate. January 24, 1963, Message to Congress on Tax Reduction & Reform, House Document 43, 88th Congress, 1st session.
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. September 18, 1963, Radio & Television Address to the Nation on the Tax Reduction Bill
Prosperity is the real way to balance our budget. Our tax rates are so high today that the growth of profits and pay checks in this country have been stunted. Our tax revenues have been depressed and our books for out of the last 10 years have been in the red. By lowering tax rates, by increasing jobs and income, we can expand tax revenues and bring finally our budget into balance. September 18, 1963, Radio & Television Address to the Nation on the Tax Reduction Bill
I have asked the Secretary of the Treasury to report by April 1 on whether present tax laws may be stimulating in undue amounts the flow of American capital to the industrial countries abroad through special preferential treatment. February 6, 1961, Message to Congress on Gold and the Balance of Payments Deficit
In those countries where income taxes are lower than in the United States, the ability to defer the payment of U.S. tax by retaining income in the subsidiary companies provides a tax advantage for companies operating through overseas subsidiaries that is not available to companies operating solely in the United States. Many American investors properly made use of this deferral in the conduct of their foreign investment. April 20, 1961, Message to Congress on Taxation
Our present tax system...exerts too heavy a drag on growth...It reduces the financial incentives for personal effort, investment, and risk-taking…The present tax load...distorts economic judgments and channels an undue amount of energy into efforts to avoid tax liabilities. November 20, 1962, press conference
The present tax codes…inhibit the mobility and formation of capital, add complexities and inequities which undermine the morale of the taxpayer, and make tax avoidance rather than market factors a prime consideration in too many economic decisions. January 23, 1963, Special Message to Congress on Tax Reduction and Reform
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 experience of a number of European countries and Japan have borne this out. This country’s own experience with tax reduction in 1954 has borne this out. And the reason is that only full employment can balance the budget, and tax reduction can pave the way to that employment. The purpose of cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus. November 20, 1962, news conference
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. January 24, 1963, Special Message to Congress on Tax Reduction and Reform
Expansion and modernization of the nation’s productive plant is essential to accelerate economic growth and to improve the international competitive position of American industry…An early stimulus to business investment will promote recovery and increase employment. February 2, 1961, Message on Economic Recovery
We must start now to provide additional stimulus to the modernization of American industrial plants…I shall propose to the Congress a new tax incentive for businesses to expand their normal investment in plant and equipment. February 13, 1961, National Industrial Conference Board
A bill will be presented to the Congress for action next year. It will include an across the board, top to bottom cut in both corporate and personal income taxes. It will include long-needed tax reform that logic and equity demand…The billions of dollars this bill will place in the hands of the consumer and our businessmen will have both immediate and permanent benefits to our economy. Every dollar released from taxation that is spent or invested will help create a new job and a new salary. And these new jobs and new salaries can create other jobs and other salaries and more customers and more growth for an expanding American economy. August 13, 1962, Radio and Television Report on The State of the National Economy
This administration pledged itself last summer to an across-the-board, top-to-bottom cut in personal and corporate income taxes…Next year’s tax bill should reduce personal as well as corporate income taxes, for those in the lower brackets, who are certain to spend their additional take-home pay, and for those in the middle and upper brackets, who can thereby be encouraged to undertake additional efforts and enabled to invest more capital…I am confident that the enactment of the right bill next year will in due course increase our gross national product by several times the amount of taxes actually cut. November 20, 1962, news conference
All the above quotations take as a given the validity of the Laffer Curve, sometimes known as “the J curve,” which shows how supply-side economics works. This is derided by demonrats and other idiots as “trickle-down economics,” and was labeled “voodoo economics” by G.H.W Bush. In truth, it is nothing but classical economics.
Only from every Chamber of Amnesty writer ever.
Surprised you noticed the similarities.
America does not have a problem collecting taxes. The problem is that America has is with spending. Until the out of control spending gets fixed, it wont matter what tax revenue reforms are put in place.
“Until the out of control spending gets fixed, it wont matter what tax revenue reforms are put in place.”
Absolutely. Our irredeemably corrupt and depraved political class will spend all the money they get from taxes, then write as many hot checks as they think they can get away with.
It has always been that way.
Lower marginal rates = economic uptick.
Always...
“our out-of-control, ever-mounting deficit. ... a commitment to limited government, sound fiscal policies and the development of real budgets”
Doesn’t seem to be much interest in these things in the Dist. of Corruption these days.
This is an advocacy for tax cuts.
It is thought that tax cuts along the lines of the Reagan tax cuts, will spur the economy to much higher GDP levels, and increase federal tax receipts.
Reagan’s tax cuts doubled federal tax receipts. Doing that again right now would give us a balanced budget, help make SS/Medical more solvent, and allow us to pay down part of the national debt.
This has been Trump’s plan all along.
That’s where I heard in our contemporary setting.
Reagan is where we heard it in a prior generation.
Surprisingly, JFK did it as well, and it worked back then too.
we could use tax incentive to WORK and to SAVE and to INVEST...
workers need to know that there output means something...
presently, people make too much money on disability, on welfare, etc..
first thing, make disability mean disability...
America’s current $20 trillion debt will look like a walk in the park compared to where it’s heading for the next generation. Our deficit cannot be fixed
You can stop right there, Tax reform will at best put a bandaid on the mortal wound we are suffering. The Fatal shot came in 1913 with the 3rd Central Bank.
The last time A Single Dollar of “Public Debt” was paid down was when Andrew Jackson banished the Den of Vipers and kicked Biddle to the curb. The entire National Debt was paid off and we began running surplus. The WAR between Liberty and Central Bankers has been going on forever, A fiat Currency with Interest Attached is the road to serfdom.
Yes we do have a problem with the way taxes are collected.
Change that and people will vote for those who will spend less.
Stop all income tax witholding.
Stop all payment of property taxes through mortgage escrow accounts.
Have all taxes paid immediately before you vote with a check or cash.
You pay your taxes for the year, you get your ballot.
People would vote very differently.
More tariffs and less income taxes. win - win.
Words words words without a point really....
So reduce marginal rates so the individual doesn’t suffer. Since it doesn’t matter.
Heads up....Rothification coming?
“So reduce marginal rates so the individual doesn’t suffer. Since it doesn’t matter.”
It matters to me; I’m all for tax cuts.
As Ronaldus Magnus demonstrated, you can’t fix poverty by giving poor people money. The only way to fight poverty is to allow people to make money.
The key to domestic investing, employment and prosperity is for the USA to make things again. A tariff would be short term pain for some and huge long term gain.
“A tariff would be short term pain for some and huge long term gain.”
Certain elements in our country have been preaching for decades that it was the Smoot-Hawley tariffs that caused the first Great Depression. In recent years I have read analyses refuting that.
It now seems to me that it has been blamed on the Smoot-Hawley tariffs to prevent us from getting that it was FDR’s leftardation that turned a run-of-the-mill recession into a global disaster.
And for those so deceived as to think that FDR “fixed” the depression, have a look at the movie “Sullivan’s Travels” to see what the Hollywood left had to say about the economy on the eve of Pearl Harbor.
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