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To: gondramB
"The problem with the tax cuts is that we did not cut spending. If you have a bloated government and cut taxes without cutting spending you just get a bloated government deeper in debt."

Initially yes, but wasn't the predicted deficit +$600 Billion start of 2005 and now we are looking at $300 billion?

More tax receipts makes for more money in the government coffers.
67 posted on 11/17/2005 9:30:37 AM PST by PureTrouble
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To: PureTrouble; rightinthemiddle; pfony1

"
Initially yes, but wasn't the predicted deficit +$600 Billion start of 2005 and now we are looking at $300 billion?

More tax receipts makes for more money in the government coffers."

Yes.

I fully support tax cuts.
I am probably in the minority on this board in that I do support some deliberate deficit spending to stimulate the economy and running a surplus to cool the economy when needed.

My problem is considering tax cuts as an absolute- they can be instituted as needed to cause deficit spending to stimulate the economy but beyond that they need to be conditioned on spending cuts. Beyond a certain point there is no benefit to borrowing money from the Chinese and Japanese just to spend it and I believe the Bush administration has exceeded that point even allowing for special circumstances. God knows he has a difficult congress so there is blame to go around.

pfony1, with due respect tp Dr. Laffer and his curve I don't believe you can demonstrate that a reduction of income tax rates has increased incomes tax revenue. If you are talking capital gains taxes I'd agree with you.


93 posted on 11/17/2005 6:38:09 PM PST by gondramB
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