"John R. Carroll" wrote:

Ed Huntress wrote:
"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.

Not true, Ed.
Bush 1 recognized the problematic direction the budget was headed in and
raised taxes significantly.

The govt debt increased under Bush1 as fast as under Reagon. By the time
those 12 years were done they had created 3 times more debt than all
debt combined of all the presidents preceding.

-jim




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

Calling the teabagger's economic policy a "myth" is given them to much
credit by half.
It's either willful ignorance, fraud, or a combination of the two.

--
John R. Carroll