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To: liberallarry
I recently heard (wish I could remember now where) that in the months since the original Reagan tax cuts in 1981 (about 290 months) we've had a total of 15 months of recession (about 5-6% of that time) and that occurred when Bush Sr. very foolishly listened to democrats and raised taxes.

But I'm sure that's all a coincidence...

37 posted on 01/31/2006 7:35:47 PM PST by THX 1138
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To: THX 1138

Agreed; the Mitchell - Bush tax increase gave us a sluggish economy. Taxes went up under Hoover and FDR. Kennedy, Reagan and GW cut taxes to good effect. The post-war German economic miracle also included tax cuts. Mosses told the Pharaoh to take only one bushel in five, and the desert bloomed. There's just a lot of evidence out there that tax cuts are highly stimulative. According to Keynesian theory, it stimulates consumer demand. According to supply-side theory, it stimulates supply. Both arguments make a world of sense. Now if we could only get a grip on Government spending! Resources (material, equipment, labor, etc.) going to government are resources that are denied to the MORE PRODUCTIVE private sector. To put it another way, why invest with a -5% rate of return, when you could invest with +5% rate of return?


70 posted on 02/01/2006 8:52:57 PM PST by ChessExpert (John Kerry's legacy: Pol Pot)
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