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Re: Reagan's economic successes
Davin L. — (archived)

That Tax Cuts improve the economy is a myth. There is *some* evidence (that is probably just correlational) suggesting that raising taxes has a deleterious effect on the economy... But nearly all Tax increases took place AFTER a slowdown in growth or a recession.

Remember, the largest and most dramatic economic boom followed the origination of the modern income tax system.... Everyones taxes went up. Yes, true, the cause of the econoimic boom was not the the taxation... but that is kind of my point. Taxes and prosperity are NOT cuasally linked in the way you claim, at least if they are, I doubt you or anyone else in this world has a sound and supportable mechanism by which they are.

The last group of folks who claimed one was the supply-siders... they projected a budget SURPLUS 2 years after the Reagan plan went into action... but instead we got one of the biggest Deficits in our national history (as percentage of GDP). Sort of terminates the validity of thier claim, don't you think?

And if you want to argue we would have, except congress spent it all, well you have two things to show:

1) Show that the increase in congressional spending offset the deficit. IE, the deficit was no larger than the increases caused by congressional add-ons to the domestic budget. (subtract the proposed budget ala Reagan and cronies from the congressional passed budget).

2) Show that congress was not fitting in to the supply-side model. Remember, the supply-siders wanted TWO things to expand the economy under their model... First, a cut in taxes to spur investing and consuption and second an increase in government spending to stimulate production and factory output. The Porky Democratic Congress of the Tip o'niel era was the perfect dance partner for the supply siders.

Instead the stupid clowns failed and pinned it on congress.... and then tried to take credit for the strategy that worked in the 90s. And, of course, the educated and uneducated idiots of the world slurp it up at the trough.

Davin

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