But the bozos who wish to "raise tax revenue," allegedly so "the government can spend the money elsewhere," don't realize that when you increase a tax on an activity (which is essentially what you do when you take away or reduce an existing deduction for it), you discourage participation in the activity, which in turn reduces total economic activity and thereby reduces tax revenues.
In other words, tax increases ultimately reduce tax revenues, which is the flip side of the maxim that tax cuts ultimately increase tax revenues. It all goes under the rubric of supply side economic theory.
And the cruelest of these proposed cuts in tax deductions will be the cut proposed for the deduction for charitable contributions. Charitable giving will be discouraged at a time when charitable organizations are already suffering from reduced donations due to the recession. Yet the Left will always persist with the myth that their policies are "compassionate."
Bozo’s is correct. If you want to stimulate the economy you need to stimulate what runs the economy.
These clowns don’t have a clue.
His real goal is Obamunism..
ML/NJ
