"Stormin Mormon" wrote in message
...
Some folks in Washington project things based on static
economy. "Well, we make a trillion dollars in taxes. Double
the taxes, and we'll make two trillion."

What they don't realize, is that when taxes go up, people
say "I guess we won't buy that after all, we'll keep using
the old one."

Raising taxes, after some point, lowers actual revenue.
Ronald Reagan recognized that, and that's part of why his
Presidency was so successful.

Reagan ran up the national debt by deficit spending:

http://en.wikipedia.org/wiki/File:US...residen t.jpg

The budgets that Reagan requested during his terms were HIGHER than the ones
that Congress approved:

http://zfacts.com/p/318.html

You've been breathing their blue smoke, Chris. Reagan ran a deficit even
when the economy was improving -- a no-no, according to everything that was
known about economics at that time, and a no-no under Keynesian theory.

That's why the GDP and employment kept improving. Reagan put us on that big
credit card, and he didn't even try to pay it down when the economy turned
up. Neither did either of the Bushes. Only Clinton did.

When you look at the actual numbers, practically all of the Tea Party
economic myths collapse like a house of cards.

--
Ed Huntress