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The big-bang story of U.S. private business [Tax Cuts Work Alert]
TownHall ^ | July 8, 2006 | Larry Kudlow

Posted on 07/08/2006 7:22:47 AM PDT by conservativecorner

Did you know that just over the past 11 quarters, dating back to the June 2003 Bush tax cuts, America has increased the size of its entire economy by 20 percent? In less than three years, the U.S. economic pie has expanded by $2.2 trillion, an output add-on that is roughly the same size as the total Chinese economy, and much larger than the total economic size of nations like India, Mexico, Ireland and Belgium.

This is an extraordinary fact, although you may be reading it here first. Most in the mainstream media would rather tout the faults of American capitalism than sing its praises. And of course, the media will almost always discuss supply-side tax cuts in negative terms, such as big budget deficits and static revenue losses. But here's another suppressed fact: Since the 2003 tax cuts, tax-revenue collections from the expanding economy have been surging at double-digit rates, while the deficit is constantly being revised downward.

For those who bother to look, the economic power of lower-tax-rate incentives is once again working its magic. While most reporters obsess about a mild slowdown in housing, the big-bang story is a high-sizzle pick-up in private business investment, which is directly traceable to Bush's tax reform. It was private investment that was hardest hit in the early decade stock market plunge and the aftermath of the 9-11 terrorist bombings. So team Bush's wise men correctly targeted investment in order to slash the after-tax cost of capital and rejuvenate investment incentives.

(Excerpt) Read more at townhall.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Philosophy; Politics/Elections
KEYWORDS: bushtaxcuts; business; jobs; kudlow; taxes

1 posted on 07/08/2006 7:22:53 AM PDT by conservativecorner
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To: conservativecorner
directly traceable to Bush's tax reform

Balderdash...The economic expansion is due to Ted Kennedy, Barbara Boxer and John Kerry's courage in fighting evil rich people.

2 posted on 07/08/2006 7:26:55 AM PDT by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: Drango

You know, the Democrats DO NOT HAVE A CLUE.


3 posted on 07/08/2006 7:28:38 AM PDT by kjo
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To: conservativecorner

Economic growth stimulated by reduced tax rates doesn't fit the socialist MSM template of class warfare and capitalist oppression. They would never write this article. Thanks for posting.


4 posted on 07/08/2006 7:42:52 AM PDT by ProtectOurFreedom
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To: conservativecorner
...unemployment rate stands at a historically low 4.6 percent rate, with total employment now at a record high 144.5 million.

Wow. Never reported by MSM.

5 posted on 07/08/2006 7:46:50 AM PDT by ProtectOurFreedom
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To: Drango
The economic expansion is due to Ted Kennedy, Barbara Boxer and John Kerry's courage in fighting evil rich people.

ROFLMAO !!!

6 posted on 07/08/2006 7:50:08 AM PDT by Ouderkirk (Don't you think it's interesting how death and destruction seems to happen wherever Muslims gather?)
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To: ProtectOurFreedom

Yesterday my local MSM radio station reported last month's 100,000+ new jobs were "disappointing and fewer than expected" !


7 posted on 07/08/2006 7:50:12 AM PDT by BigBobber
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To: kjo
You know, the Democrats DO NOT HAVE A CLUE.

The D'rats KNOW! They WANT a dependent socialist society... it's about power over the proletariat... D'rat leadership is NOT STUPID... Marxism is in their Blood.

8 posted on 07/08/2006 7:54:47 AM PDT by Bob Eimiller (Kerry, Kennedy, Pelosi, Leahy, Kucinich, Durbin Pro Abort Catholics Excommunication?)
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To: ProtectOurFreedom; conservativecorner
Seems that this idea that wealth is created by lower taxes and the freedom to start one's own business, is awfully difficult for a lot of people to see.  

Today's Investor's Business Daily has an article on how "June's 121,000 Jobs Far Below Targets, But Pay Gains Jump".   It starts with saying that payroll numbers show jobs are down (that's bad) and at the same time family survey numbers show that unemployment is low (that's good).  The IBD dropped the ball by giving up and saying "Jobs figures have become increasingly obtuse of late."

Nothing obtuse about it at all.  People are quitting payrolls because they're making more money on their own.

9 posted on 07/08/2006 7:55:48 AM PDT by expat_panama
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To: Bob Eimiller


No dependency=No constituency.
No constituency= No power.
No power= No effect.


10 posted on 07/08/2006 7:58:50 AM PDT by TET1968 (SI MINOR PLUS EST ERGO NIHIL SUNT OMNIA)
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To: ProtectOurFreedom

Remember the glowing economic reviews being reported daily by the media during the Clinton years. Every other story was about how good we all had it............

Now when the numbers are even better then before, more stable and sustainable true economic measures are being met or surpassed not a word from the media.

If your looking for bias there is no better example.


11 posted on 07/08/2006 8:07:50 AM PDT by baystaterebel (http://omphalosgazer.blogspot.com/)
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To: conservativecorner

Larry Kudlow is on WABC radio right now. He has about 4 hrs. starting at 10am........well worth the listen. He covers all topics, not just economics and he's very easy to understand.


12 posted on 07/08/2006 8:32:08 AM PDT by OldFriend (I Pledge Allegiance to the Flag.....and My Heart to the Soldier Who Protects It.)
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To: ProtectOurFreedom
I would attribute much of the growth in the economy over the past few years to the effect of extremely low interest rates. The stimulus from the housing boom and the home owners' equity spending was enormous. We are now on the down slope of this effect - and there will be hell to pay!
13 posted on 07/08/2006 8:49:58 AM PDT by GregoryFul (cheap, immigrant labor built America)
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To: expat_panama
Seems that this idea that wealth is created by lower taxes and the freedom to start one's own business, is awfully difficult for a lot of people to see.

I guess it's the "lottery culture" - the idea that the only way to get rich is if some large entity gives you a lot of money for free.

And, to be blunt, a very large number of people simply don't have what it takes to start a business and make it successful. The problem arises when they elect politicians who make it easier for them to live their chosen lifestyle of dependency at the expense of those of us who are capable.

14 posted on 07/08/2006 8:57:45 AM PDT by Mr. Jeeves ("When the government is invasive, the people are wanting." -- Tao Te Ching)
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To: GregoryFul

Agreed about cheap interest rates. But rates are a function of the availability of investment capital. Larger supply of capital drives rates down. Capital was freed up via lower tax rates.


15 posted on 07/08/2006 9:12:40 AM PDT by ProtectOurFreedom
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To: conservativecorner

The tax cuts are one reason for the worldwide leftwing hatred of President Bush. It has worldwide implications for the high tax socialist governments. If the EU economy grew by 2% they'd be dancing in the streets. When the US economy grows at 5.5% and the high taxed Germans for example see theirs growing at .5% it has to have an effect. A robust low tax economy is a dagger in the heart of the world socialist movement.


16 posted on 07/08/2006 10:18:45 AM PDT by Hamilcar_Barca (Hamilcar_Barca)
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To: Mr. Jeeves
...a very large number of people simply don't have what it takes to start a business and make it successful...

That may have been true in days gone by but it's a lot less true today.  Like Kudlow pointed out, "firms with less than 500 employees created 88 percent of the net new jobs in the United States between 1990 and 2003".  IMHO this is a serious trend for the better.

Think of it; 40 years ago the Democrats controlled both the executive and legislative branches (with Earl Warren as Chief Justice) and most state governors were dems.   All that's been reversed; people change.

17 posted on 07/08/2006 10:35:55 AM PDT by expat_panama
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To: conservativecorner
Hopefully we have seen the end of punitive tax-rates, but I doubt it. Class warfare is the Dems stock in trade. They are chomping at the bit waiting for the opportunity to inflict more of their wonderful social spending disasters on the country.

The irony of the whole thing is that many of Dems who whine about the income gap are themselves filthy rich. I don't see rich libs clamoring for equally well-off lib volunteers for a tithing program to help the "disadvantaged". Instead they want the average earner to pay through the nose.

18 posted on 07/08/2006 1:50:14 PM PDT by driftless ( For life-long happiness, learn how to play the accordion.)
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To: TET1968
Your post number 10 hit the nail on the head. Dems don't want people working without a big (lib) bureaucracy to "help" them. Independent entrepreneurs are the bane of libs.

I remember reading an article some years back where some union bigwig was opposed to work-at-home moms. According to this "genius", who would be there to guarantee her on-the-job safety? It sounds like something out of The Onion, but I swear that's very close to what the idiot said.

19 posted on 07/08/2006 1:57:29 PM PDT by driftless ( For life-long happiness, learn how to play the accordion.)
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To: baystaterebel
"Clinton years"

At the start of the Bush admin I remember one strong Dem co-worker who wondered how Republicans could possibly keep the economy going. I could scarcely contain my astonishment (and laughter) at his statement. When I pressed him for the reason behind his utterance, he had no clue. No surprise there.

20 posted on 07/08/2006 2:00:56 PM PDT by driftless ( For life-long happiness, learn how to play the accordion.)
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To: Ouderkirk
e economic expansion is due to Ted Kennedy, Barbara Boxer and John Kerry's courage in fighting evil rich people.

They're fighting themselves?
21 posted on 07/08/2006 6:16:17 PM PDT by Man50D (Fair Tax You earn it . You keep it!)
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To: ProtectOurFreedom

Capital was "freed up" by the printing press!


22 posted on 07/08/2006 10:25:25 PM PDT by GregoryFul (cheap, immigrant labor built America)
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