Taxing The Truth
By INVESTOR'S BUSINESS DAILY
Wednesday, February 11, 2009 4:20 PM PT
Stimulus: President Obama, a smart man, says that tax cuts for the wealthy are the main reason we're now in such economic trouble. Someone needs to tell him how utterly — and dangerously — wrong that is.
Full article INVESTOR'S BUSINESS DAILY
Excerpts:
"We have tried that strategy time and time again," the president said Monday of "tax cuts for the wealthiest few Americans," and "it's only helped lead us to the crisis we face right now."
Well, he's half-right: We have tried it again and again. But rather than create crises, economic growth has been restored. The evidence is pretty much beyond dispute.
Since World War I — the start of the modern financial era — we've suffered four major downturns. In three of them, the government cut tax rates. And each time an economic boom ensued.
August 23, 2008
The 2001 and 2003 Tax Relief: The Benefit of Lower Tax Rates
TAX FOUNDATION
by Robert Carroll
Fiscal Fact No. 141
Full article Robert Carroll TAX FOUNDATION
Excerpts:
Summary
Recent research on President Bush's tax relief in 2001 and 2003 has found that the lower tax rates induced taxpayers to report more taxable income. In particular, the reduction in the top two tax rates induced taxpayers to report more taxable income—an increase in the size of the tax base—to such an extent that this positive behavioral response likely offset roughly 25 percent to 40 percent of the static revenue loss of lowering the top two tax rates. This research illustrates that, while the lower tax rates have not paid for themselves, they do provide important economic benefits and can expand the tax base to such an extent that they cost the federal government substantially less revenue than the casual observer might think. Moreover, this research may provide valuable insights into the harmful effects of high tax rates as the Presidential candidates' tax plans are evaluated.
Tax Cuts Economic Effects of the 2001 and 2003 Tax Relief
The central component of the 2001 and 2003 tax relief was lower individual income tax rates. For example, the 15 percent rate was lowered to 10 percent for low-income taxpayers and the top tax rate faced by high-income taxpayers was lowered from 39.6 percent to 35 percent. The 10-percent bracket accounted for nearly one quarter of the individual income tax relief. This tax change, combined with the reduction in the marriage penalty and the expansion of the child tax credit, provided a short-term economic stimulus by letting taxpayers keep more of their income. Nevertheless, even though these provisions increased taxpayers' after-tax incomes, they did little to improve economic incentives. Indeed, to the extent these tax provisions were financed with additional government borrowing, they may well have detracted from economic growth in the longer term by adding to the deficit and increasing long-term interest rates.Tax Cuts November 21, 2007Speaking of elections, the liberal candidate for Mayor of Indianapolis had all the endorsements.
Huge UpsetTax Increases By Mayor Costs Him ElectionRepublican challenger Greg Ballard won a stunning upset in winning election for mayor of Indianapolis.
Mr. Ballard beat two time Mayor Bart Peterson who almost certainly lost because he increased property taxes.
For much of the race Mr. Ballard's name was not even known to most voters.
The challenger was almost totally unfunded and yet pulled off one of the most stunning upsets in recent memory.
We constantly hear the Mainstream Media and liberals downplay the importance of taxes in elections.
Tax Cuts October 10, 2007Hong Kong's Flat Tax May Drop to 15 Percent. Competition from Singapore is probably the reason.
Hong Kong may reduce the flat tax rate on both corporate income and labor income down to 15 percent.
Singapore has been steadily cutting corporate taxes over the past few years. Its rate now stands at 18%.
Latest Data on Tax Cuts-Top Taxpayers Pay PlentyThe C.B.O.’s most recent calculations of federal tax rates shows how progressive the system is.
Based on 2004 data, little has changed in the tax code
The poorest fifth of the population, with average annual income of $15,400, pays only 4.5 percent of its income in federal taxes.
The middle fifth, with income of $56,200, pays 13.9 percent. And the top fifth, with income of $207,200, pays 25.1 percent.
The C.B.O. reports very high tax rates at the top. The richest 1 percent has average income of $1,259,700 and forks over 31.1 percent of its income to the federal government.
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As predicted by supply side economists, the 2003 tax cuts have yielded soaring revenues.
In fact, had Congress shown even mild restraint on spending, we would now have a surplus.The C.B.O.’s most recent calculations of federal tax rates show a highly progressive system. (The numbers are based on 2004 data, but the tax code has not changed much since then.) The poorest fifth of the population, with average annual income of $15,400, pays only 4.5 percent of its income in federal taxes. The middle fifth, with income of $56,200, pays 13.9 percent. And the top fifth, with income of $207,200, pays 25.1 percent.
At the very top of the income distribution, the C.B.O. reports even higher tax rates. The richest 1 percent has average income of $1,259,700 and forks over 31.1 percent of its income to the federal government.
Congress's sorry record aside, the deficit, now running at a 2.3% rate, is smaller than most of those of the last 25 years, and smaller than those of most major industrialized nations.
How powerful have the tax cuts been?
In the first nine months of fiscal 2006, Tax revenues have increased by $206 billion, or nearly 13%, the second-highest rate, for a nine-month period in the past 25 years.
Which is the only year that ever topped this number?
The year before. For the full year 2005, revenues were 15% higher than the previous year, in the amount of $274 billion.
As we well knew, when the cuts were debated, liberals talked of skyrocketing deficits. Then as now, they pushed their big government, redistribution, spending schemes, highly resentful of Americans keeping a little more of their own money.
Unfortunately too many Republicans have hitched themselves to the liberal pork and welfare wagon.
Despite inheriting an economy in recession, reckless congressional spending, Katrina, record high oil prices and the Iraq War revenues are pouring in to the federal government.
Oh yes, most states have the same problem!
Tax Cuts
Tax Cuts To Reaganomics-WSJ Article
