The Bush Capital Gains Tax Cut after Four Years: More Growth, More Investment, More Revenues

ncpa.org ^ | 2008

[Henchster]

"W isn't a supply sider. He's a demand sider who likes lots of government spending, a weak dollar, illegal alien slave labor, and high commodity prices. His record on regulations isn't so great either."

Nobody said GWB was Reagan, but think of what Gore or Kerry would have done, instead of what GWB did.

Could we do better? ALWAYS! Was GWB the best alternative to the socialists Gore and Kerry? ABSOLUTELY.

Even Reagan, AT BEST, battled government spending to a stalemate, GWB has played the best he could with a weak hand dealt to him by the American people who elected a limp, socialist and communist bunch of representatives.

[doug from upland]

So an increase in capital gains receipts because of a lowering of the rate is a bad thing? No, the bad thing is too much spending.

[Moonman62]

GWB has played the best he could with a weak hand dealt to him by the American people

You mean the American people who held firm and demanded he start enforcing immigration law no matter how demeaning he was to us? Or the American people who convinced him to drop Harriet Miers?

[ccmay]

Even if Obama understood this perfectly well, which is highly doubtable, there is no way he would change his position. Maximizing revenue is not as important as being perceived by the Democratic base as someone who will inflict pain on the rich for the sin of having money.

-ccm

[EVO X]

People’s lack of economic understanding is staggering

One of my coworkers fit this discription. He caught on fairly quickley when he jumped into the 28% bracket when his wife took a lump sum vacation payout at retirement, etc..

[trane250]

The increase in debt is not a consequence of increased tax receipts.

You are correct that the increase in debt is not a consequence of increased tax receipts. The increase in capital gains tax receipts is a consequence of increased borrowing to make up for the shortfall in general revenue when the tax burden is lowered. The effect of more money in peoples pockets plus the same or higher spending by the government stimulates the economy leading to higher tax receipts but never enough to make up for the increased borrowing. Some day, we will have to pay the piper and it will be ugly.

[Myrddin]

The increase in capital gains tax receipts is a consequence of increased borrowing to make up for the shortfall in general revenue when the tax burden is lowered.

I don't buy that explanation either. The revenues increase as a consequence of increased economic activity by parties who sit on the sidelines when the rates are higher. If there is increased borrowing, it is from the same numb skulls that are engaged in the increased spending. Politicians only care about getting re-elected.