Sen. Graham: Republicans Should Accept Tax Revenue Increase

[Mr. Big Dog 10,747]

The point is just that raising taxes weakens the economy and does not raise revenue by a commensurate amount.

That's part of the religion you have signed on to. Taxes were never lower than they were over the past decade and look what a bang economy we have as a result. Taxes were higher in the 90's than the 80's or 00's and the economy of the 90's looked a hell of a lot better than either of the latter. As did the fiscal picture of this country. But hey, religion is religion.

[웃 910]

We agree? You want to kill them, I want to keep them alive.

Are you against assisted suicide?

[SMR 368]

That's part of the religion you have signed on to. Taxes were never lower than they were over the past decade and look what a bang economy we have as a result. Taxes were higher in the 90's than the 80's or 00's and the economy of the 90's looked a hell of a lot better than either of the latter. As did the fiscal picture of this country. But hey, religion is religion.

As I said, if you have a method for running two parallel realities with controlled differences, then please share. Otherwise, this isn't going to be provable and scientific. Obviously taxes aren't the only thing that affects the economy. While the deficit problem may be partially blamed on the Bush tax cuts, I don't think you will find many economists who would argue that the lower taxes are contributing in a significant way to the current economic woes.

Taxes were higher in the 90's than the 80's? Not exactly. Income taxes were low in '88, '89, and '90 and then raised slightly in '91 and '93. However, they never reached the '87 level. Further, I would add that the effect of tax cuts or increases are felt over the course of the following years and not immediately due to the compounding effects of investments. Relatively low taxes at the end of the 80's and through the 90's (as compared to the 70's and most of the 80's) contributed to the growth of the economy throughout the decade.

[mawilson 2,133]

Are you against assisted suicide?

No. Suicide is fine with me.

[웃 910]

Relatively low taxes at the end of the 80's and through the 90's (as compared to the 70's and most of the 80's) contributed to the growth of the economy throughout the decade.

Yes, the rich got extremely richer while the middle and lower class didn't see any change.

And adding 81 million people into the mix (226 million in 1980 to 307 million current) is going to add more money (ie growth) into the economy.

[Mr. Big Dog 10,747]

As I said, if you have a method for running two parallel realities with controlled differences, then please share. Otherwise, this isn't going to be provable and scientific. Obviously taxes aren't the only thing that affects the economy. While the deficit problem may be partially blamed on the Bush tax cuts, I don't think you will find many economists who would argue that the lower taxes are contributing in a significant way to the current economic woes.

Taxes were higher in the 90's than the 80's? Not exactly. Income taxes were low in '88, '89, and '90 and then raised slightly in '91 and '93. However, they never reached the '87 level. Further, I would add that the effect of tax cuts or increases are felt over the course of the following years and not immediately due to the compounding effects of investments. Relatively low taxes at the end of the 80's and through the 90's (as compared to the 70's and most of the 80's) contributed to the growth of the economy throughout the decade.

Top tax rate following the 1986 Tax Reform Act was 38.5%, the top rate following the '93 increase was 39.6%.

[SMR 368]

Top tax rate following the 1986 Tax Reform Act was 38.5%, the top rate following the '93 increase was 39.6%.

I'm sorry, I misread the data. So 1987 was also marginally lower than '93. That doesn't really change the general idea especially when you consider that you would expect the effect to be delayed a couple years (you don't see the economic benefits until there have been a couple years where the savings from lower taxes have been reinvested in the private economy).

And the fact remains that the average top income tax bracket was higher in the 80's than it was in the 90's.