- 03 Feb 2010 23:48
#13311235
Tax cuts increased federal revenue in the mid 1980's as well as the early 21st century (after the 2003 recession, of course). If you look at 2004 to 2007, the budget deficit decreased fairly substantially despite no increase in taxes AND pretty significant increases in expenditures. It wasn't until the recession hit that federal receipts tanked so significantly (hard to pay income taxes without an income, right?).
In either example, if the government had kept federal spending in check (particularly military spending), then it's entirely possible that it would have eliminated the deficit entirely. It was well on pace to in the latter part of this decade before the recession hit (I think the projection was a surplus by 2011, but I could be wrong).
So tax CUTS are gonna DECREASE deficit and debt ?
Do you also believe in Tooth Fairies ?
Tax cuts increased federal revenue in the mid 1980's as well as the early 21st century (after the 2003 recession, of course). If you look at 2004 to 2007, the budget deficit decreased fairly substantially despite no increase in taxes AND pretty significant increases in expenditures. It wasn't until the recession hit that federal receipts tanked so significantly (hard to pay income taxes without an income, right?).
In either example, if the government had kept federal spending in check (particularly military spending), then it's entirely possible that it would have eliminated the deficit entirely. It was well on pace to in the latter part of this decade before the recession hit (I think the projection was a surplus by 2011, but I could be wrong).
"Never put passions ahead of principles. Even if you win, you lose."