Skip to comments.The big-bang story of U.S. private business [Tax Cuts Work Alert]
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 ...
Balderdash...The economic expansion is due to Ted Kennedy, Barbara Boxer and John Kerry's courage in fighting evil rich people.
You know, the Democrats DO NOT HAVE A CLUE.
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.
Wow. Never reported by MSM.
Yesterday my local MSM radio station reported last month's 100,000+ new jobs were "disappointing and fewer than expected" !
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.
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.
No dependency=No constituency.
No constituency= No power.
No power= No effect.
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.
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.
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.
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.
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.
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.
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.
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.
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.