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WHY TAX CUTS WON'T WORK
CommonConservative.com ^
| 6/1/03
| Tom Adkins
Posted on 06/01/2003 1:45:37 AM PDT by TomAdkinsCC
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To: HankReardon
Tax policy IS used to alter and control the "domestic free market".
A lot more alter than control, though. Corporate tax lawyers are very ingenious people, especially when they get an opportunity to have input on writing of tax laws. Legislators don't read most of the legislation they vote on. They rely on staff people to interpret it for them. The regulations that apply the laws are definitely written by specialists, and sometimes, the impact of the regulation comes out to be 180° opposed to the intent of the law, certainly making an abrupt 90° turn at times.
To: TomAdkinsCC
The reason the last three tax cuts worked is because they were permanentTaxes, by their very nature, are fliud not static. Any change in the politcal structure of Congress will affect the permanancy of any tax legislation.
However, a political advantage is gained by forcing the marxists to not only raise taxes but repeal existing tax cuts as well.
And finally, any tax cut is a good tax cut.
22
posted on
06/01/2003 6:30:11 AM PDT
by
jwalsh07
To: TomAdkinsCC
The guy is not a serious analyst. His way too facile and cutesy argument overlooks many more things than I am in the mood to go into, but which some of our far more astute economic experts here at FR will surely bring to his attention.
23
posted on
06/01/2003 7:46:29 AM PDT
by
beckett
To: TomAdkinsCC
I'm so overtaxed I'm in favor of ANYTHING that goes back to ANY people. I'm probably getting nothing from this tax cut (single, making too much, no children), and I'm still 100% in support and enthusiastic about the cut. I just want the government to control my life and OUR lives as little as possible.
I gave myself a tax cut this year and refused to pay for my car tags. =) I started counting all the ways the state gets me to pay for their highways, and I just didn't think it was fair. So by a narrow vote of 1-0, it passed in my Senate and House. Look at how much we spend on GASOLINE tax, for goodness sakes. We should have gold-plated highways.
To: TomAdkinsCC
The premise that CONSUMERS will hold off on something because of future perdictions is like thinking the rules of graviety might change. American consumers spend NOW because it gives them pleasure. Period. Point two, as has been said many times in the past week try to increase the sunset taxes or end them and your are telling people you are FOR TAX INCREASES. Not likely to happen. The rest of your ideas are interesting but rely on these two false assumptions.
25
posted on
06/01/2003 8:16:50 AM PDT
by
q_an_a
To: beckett; jwalsh07
Supply side economics is way oversold at the rates we are talking about here (the Kennedy cut and the Reagan cut were when rates were much higher, and the guy's assertions in that regard upon full examination don't really pan out), but there is one demonstrable flaw in the writer's argument. The cut on dividends and capital gains has boosted the stock market before our very eyes by about 20% (I think that is the major factor in the runup), and thus folks have more paper wealth, and will spend more. The market obviously think that these cuts will be renewed on the sunset date.
26
posted on
06/01/2003 8:17:56 AM PDT
by
Torie
To: Torie
I sometimes wonder how much benefit tax cuts will be when manufacturing & tech is overseas.
You cut taxes, so people have more to spend. The money is spent on goods from china (or where ever) the companies who's products you purchased with said tax cut dollars now pay to expand/modernize operations & hire people.. In china, but not here.
Sure, people still have jobs transporting, stocking and selling the stuff.. but many of those are relatively low paying positions.
When the smoke clears, I wonder how things will fare for future economic stimulus/tax cut packages.
?
27
posted on
06/01/2003 8:36:22 AM PDT
by
Jhoffa_
To: Torie
Supply side economics is way oversold at the rates we are talking about here (the Kennedy cut and the Reagan cut were when rates were much higher, and the guy's assertions in that regard upon full examination don't really pan out), but there is one demonstrable flaw in the writer's argument. The cut on dividends and capital gains has boosted the stock market before our very eyes by about 20% (I think that is the major factor in the runup), and thus folks have more paper wealth, and will spend more. The market obviously think that these cuts will be renewed on the sunset date.I agree with nearly all of that. However, I'm not sure about the relationship between the tax cuts on dividends and the recent rise in stock prices. Has anyone attempted to correlate the rise in individual stock prices with dividend ratios?
To: Torie
Yup, that is a fact.
29
posted on
06/01/2003 8:55:58 AM PDT
by
jwalsh07
To: Jhoffa_
The weak US dollar is already working it's way into US manufacturing on the plus side.
The latest reports from the midwest show unexpected increases in same.
30
posted on
06/01/2003 8:57:29 AM PDT
by
jwalsh07
To: Scenic Sounds
Go
here to MSN. Adjust the chart period to run from 3/11/2003, add the fund VIGRX, and compare the return of VIVAX versus VIGRX.
31
posted on
06/01/2003 9:12:36 AM PDT
by
Torie
To: Torie
I'll take a look at that. Thanks.
To: TomAdkinsCC
Tax cuts do work. Remember Rome. One of the reasons they fell was they taxed their people to death.
33
posted on
06/01/2003 9:49:22 AM PDT
by
freekitty
(W)
To: HankReardon
As an aside, you mention tariffs being used to alter free market forces. Is China really a free market? Or, does China, when considered as an element of a vast, global market place, really contribute to that vast, global marketplace being free?
To: TomAdkinsCC
What the writer ignores is the political aspect of the sunset provisions. As Dick Morris has pointed out, these force the Democrats to essentially campaign on a platform of tax hikes next year!
http://www.nypost.com/postopinion/opedcolumnists/76936.htm If Morris is correct, then this is a doubly beautiful thing. Unlike the 2001 cuts, which were unwisely shoved off until years out.
To: Jhoffa_
"I sometimes wonder how much benefit tax cuts will be when manufacturing & tech is overseas."
Which can be addressed by allowing the dollar to fall with respect to other currencies.
Coincidence? I think not!
Prepare for one heck of an economic boom, is my read on the matter.
To: Cacophonous
His argument fails because it is not divided evenly over 10 years, as he shows in his example. It has a much larger immediate impact. Additionally, I do not believe spending behavior is based on people looking 3-7 years down the road; most spending decisions are made on what's in the bank account now. More money in the account, more spending.
37
posted on
06/01/2003 2:52:33 PM PDT
by
ilgipper
To: The Wizard
complete and total drivelThe reason the last three tax cuts worked is because they were permanent. People knew they could buy a car, house, or invest money with a future tax rate that was predictable.
Milton Freidman won a noble prize in economics as a supply sider for writing basically what is stated above. This isn't drivel, Bush believes in supply side, and a big thanks on tax cuts being a policy goes to Reagan who used Friedman as the basis for this policy, but he does have a legitimate point, in a way, we have to hope that one of the best economists and a huge advocate for supply side is wrong on this one occasion.
38
posted on
06/01/2003 8:52:10 PM PDT
by
Sonny M
("oderint dum metuant")
To: jscd3
Remember, I'm just asking, but it seems to me that if the AMT is not substantially adjusted, most all other tax reductions are going to be irrelevent for the 25% or more of tax payers that currentlt pay AMT. The belief amongst most, is that there will be serious reform in the second term, and this may be used as a campaign issue.
Also, some time in the next couple of years, the AMT will start affecting over 35 million american families, reform of the AMT will be a part of the overall strategy in Bush's promise to reform and simplify the tax code and bring about Tax reform.
39
posted on
06/01/2003 8:55:22 PM PDT
by
Sonny M
("oderint dum metuant")
To: TomAdkinsCC
bttt
40
posted on
06/01/2003 9:43:31 PM PDT
by
XBob
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