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To: Yardstick
When the government pumps an economy full of borrowed dollars (through deficit spending), isn't it to be expected that some of those dollars will flow back into the government coffers through taxation?

Some of the spending dollars will definitely flow back into the coffers through taxation. However, we have something much more significant here in the great surge of tax revenues in April of 2006. That surge was mostly driven by taxes on realized capital gains, which are not simply a return of government spending, but represent real growth in the economy. Many on this thread have lamented the fact that there has been a growth in government revenue. The feeding of more spending is definitely bad; however, that's what happens whenever there's a major economic expansion, like the one brought about by Bush's tax rate cuts. Would we prefer not to have the expansion? Equally important, and the real point of my original post, is this revenue expansion shows economy stimulating tax cuts don't expand the deficit, giving the lie to the DemonRats' class war based propaganda that they do.

15 posted on 05/12/2006 5:22:36 AM PDT by libstripper
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To: libstripper
Thanks for the reply.

...which are not simply a return of government spending, but represent real growth in the economy.

How do we *know* this? Are there any figures that can be cited to prove that this is the case?

17 posted on 05/12/2006 12:27:09 PM PDT by Yardstick
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