Cynical Nation

Well, it worked for Ireland!

"Ireland's economy essentially doubled during the 1990s, bringing job growth to a nation whose unemployment rates toppped 15% as recently as 1993. By 2000, unemployment was below 5% and per capita output had risen sharply, pushing Ireland into an elite crowd of well-to-do EU nations such as Sweden, Germany and the U.K. Its strong growth, which has moderated in recent years, means Ireland now ranks ahead of Britain and other major EU economies, with per capita GDP of $34,100...

"...Its genesis can be traced back to 1987 when the then Government made the decision to confront the harsh realities that had led the country into deep recession, high unemployment, high inflation and high emigration.

"Government spending was sharply curtailed and a series of partnership agreements between Government, employers and trade unions were based on low pay increases and a gradual reduction in personal taxation. In the late 1980s income tax was levied at 58% but within 15 years that income tax rate had been reduced to 42%.

"The result of this radical change in economic and budgetary policy was a reduction in the unemployment rate from nearly 20% in the late 1980s to a current rate of 4.5%; today there is net immigration into Ireland compared to 20 years ago when young Irish people were leaving the country in large numbers to find work."

http://online.wsj.com/public/resources/documents/info-irlandsecon06.html

Another and perhaps as important a reason as any for Ireland's boom was that, "Ireland cut its corporate tax rate from 43 percent to only 12 1/2 percent, attracting investment from around the world and, in turn, becoming not only one of the fastest-growing but one of the wealthiest economies in Europe."

http://www.discovery.org/scripts/viewDB/index.php?command=view&id=2317&program=Technology+and+Democracy&callingPage=discoMainPage

Tabbing Rahm Emanuel (one of the architects of the "Blue Dog"-led Congressional takeover of 2006), running on eliminating the AMT, reducing the Corporate tax rate and supporting the NSA surveillance program....at least on those issues, that's CHANGE I can believe in!

Do you think it can happen? do you think it has a chance to happen? 'cause if it does, it will be like when the Democratic-Republicans dominated govt during the "Era of Good Feelings" (1817-1825) when the DR's usurped the Federalists' concepts as their own and suceeded.

Yeah, wouldn't that be cool? :-)

After all, Bill Clinton gave us a capital gains tax cut, NAFTA, and welfare reform. I don't really care who gets it done, and in fact, those reforms probably went much more smoothly coming from Clinton than they would have from a GOP president.

I don't know if i understand what this guy is saying but it seems to be the same thing Obama was saying all along, cut taxes. And the liberal illuminati want to do this but where to they make up the revenue for the country. that's what i don't get.

"I don't know if i understand what this guy is saying but it seems to be the same thing Obama was saying all along, cut taxes. And the liberal illuminati want to do this but where do they make up the revenue for the country. that's what i don't get." (roadwarrior)


Tax cuts have increased revenues roadwarrior.

The Bush across the board income tax rate cuts INCREASED income tax revenues every year since!

When the Gingrich Congress cut the Capital Gains rate from 30% to 20% Cap Gains revenues skyrocketed and they increased AGAIN when G W Bush cut the rate to 15%.

Income tax rate cuts tend to INCREASE income tax revenues because the top 10% of income earners in the U.S. pay over 70% of the income taxes.

That group also has the most discretionary income and when tax rates rise, that incentivizes SAVINGS, in the form of deferring compensation or income in various tax-deferred behicles.
That's why when tax rates are cut, more people take more of their income upfront and NON-deferred and revenues soar, and when tax rates rise, more people in that top 10% of income earners defer more of their income/compensation and tax revenues fall.

Some taxes, like the Corporate tax create OTHER benefits despite a loss in revenues.

When Ireland cut its Corporate tax rate from 43% to 12% businesses flocked to Ireland and transformed that economy from basketcase to dynamo virtually overnight.

In the U.S. Corporate tax revenues have fallen from 4.8% of our gross tax receipts to 1.4% of our GTR's.

Since (1) the corporate tax is merely a "stealth sales tax" anyway, as it, like EVERY cost of doing business is passed on to consumers and (2) the benefits of more businesses opening in the U.S and hiring more workers, due to those lowered costs of doing business, many economists have argues that the overall benefits - more jobs, more people on the tax rolls, etc. - far outweigh the relative small loss in revenues.