Posted on 03/20/2008 1:43:52 PM PDT by groanup
Georgia Republicans have a choice to make, a choice between math and myth.
The math is pretty simple: We're heading into a major recession that a lot of economists predict could be deeper and longer than anything we've experienced in a generation or longer. Already, state revenues have begun to fall significantly, raising fear of budget shortfalls.
Recession math smacks head-on into Reagan myth Jekyll Island deserves a planned, professional upgrade Local control trashed in great power grab of '08 Peeling off from the herd shows Obama's patriotism Speaker's tax proposal badly flawed Hillary's defeated; GOP sets its sights on Obama Vive le veto of power-mad Gold Domers
In California, the situation has already gotten so bad that 20,000 school employees may soon be laid off to balance the budget.
Under such circumstances, basic math says that passing significant tax cuts would compound the problem. It would turn potentially serious budget cutbacks into something truly traumatic.
But then there's the myth, as embodied in Ronald Reagan. The Reagan myth says that there's no such thing as a bad time to cut taxes. The Reagan myth says that cutting taxes will boost the economy, and thus government revenue. So when House Speaker Glenn Richardson touts his plan to eliminate the car tax, he cites Reagan as his tax-cutting model, claiming that it will stimulate the economy.
(Excerpt) Read more at ajc.com ...
He moans about recession and doesn't want a tax cut. Go figure.
His e mail is jaybookman@ajc.com
“It’s simple economics son. I don’t understand it at all.”
Reagan economics also meant that you held the line on spending.
Bush economics says no such thing
If the treasury would announce a policy of adjusting the dollar to a set gold price (so that foreign investors wouldn't see their profits evaporates as the US devalues the dollar) and Washington attempted to adjust tax policy so that real rates of return in the US were again competitive world-wide, we might see this downturn stopped without too much carnage.
“We’re heading into a major recession that a lot of economists predict could be deeper and longer than anything we’ve experienced in a generation or longer”
and other economist state that we’ve bottomed, GNP Growth this year could ‘dive’ to 1.5%, and recession will be avoided (again). GNP Growth next year returns to about 3%. Agreed, he’s another liberal who won’t see the end to doom and gloom ‘til he elects his favorite communist!
Budget cuts that are traumatic for politicians and liberals? Be still my heart.
This paragraph is probably the one that makes the most sense out of all from this article.
Good point. The Georgia legislator proposing a cut in the car tax is wrong when he claims it will help the economy. In my book, of course, all tax cuts are good, but they don't all lead to economic growth.
The Governor's idea to cut income taxes is the right answer -- it will help spur investment. Cutting employment taxes (Workmens' Comp., etc.) would also be a wise move.
I'm getting to consider "economists" in the same boat as "journalists", global warmers and politicians. They are all mentally devoid of any functioning brain cells and work hard, day in and day out to give us proof of that fact.
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