Power of Story Send a Tweet        

Share on Google Plus Share on Twitter Share on Facebook Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 4 (4 Shares)  

Printer Friendly Page Save As Favorite View Favorites (# of views)   10 comments
OpEdNews Op Eds

TAX CUTS: THEOLOGY, FACTS & TOTALLY F**KED

By       Message Larry Beinhart       (Page 1 of 3 pages)     Permalink

Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) , Add Tags  (less...)  Add to My Group(s)

Interesting 1  
View Ratings | Rate It

opednews.com Headlined to H2 11/17/08

Author 81
Become a Fan
  (6 fans)
- Advertisement -

THE MYTH


Do tax cuts stimulate the economy?

Yes. Tax cuts allow people to keep more of their own money therefore they have more to invest and spend into the economy and more money to start business and create jobs therefore also helping to stimulate the economy
Yahoo Answers


I think when people take a look back at this moment in our economic history, they'll recognize tax cuts work. They have made a difference.
George W. Bush



THE REALITIES

- Advertisement -

The brute facts are these:


Large income tax cuts are followed by a bubble and then a crash.

High income taxes correlate with economic growth.

- Advertisement -
Income tax increases are followed by economic growth.

Moderate income tax cuts are followed by a flat economy.

All this is especially true as applied to the top tax rates, the amount paid on income that exceeds the highest bracket.


THE THREE GREAT TAX CUTS: BOOM, BUBBLE, CRASH

1. HOOVER
During World War One the top marginal tax rate went up to 73%. Not the highest ever, but pretty high.

In 1922, a series of rate cuts began. Down to 56%, 46%, and finally, in 1925, it went down to 25%.

- Advertisement -
The stock market took off. There was a boom. But the boom was a bubble.

It was followed by the Great Crash of 1929.

There were bank failures and the Great Depression.

Next Page  1  |  2  |  3

 

- Advertisement -

Interesting 1  
View Ratings | Rate It

opednews.com

LARRY BEINHART is the author of SALVATION BOULEVARD,  a major motion picture with Pierce Brosnan, Greg Kinnear, Jennifer Connelly, Marissa Tomei, Ed Harris, and Jim Gaffigan, WAG THE DOG, The LibrarianFog Facts: Searching for Truth in the Land of Spin  and HOW TO WRITE A (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon Share Author on Social Media   Go To Commenting

The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Class War Launched by America's Wealthiest Is Getting More Savage

RECOVERY, TAXES, GOVERNMENT SPENDING, AND ASTONISHING STUPIDITY

Crash Course In Economics

The God Series – Because Religion is The Battleground of the 21st Century

TAX CUTS: THEOLOGY, FACTS & TOTALLY F**KED

Renewing the Bush Tax Cuts Is Like (this is a contest)