Re: Obama Understands Economics in Spite of Himself

That and the meme the dems are using, saying that the republicans want to
give a tax cut to the wealthy.  Like this is a new cut, not a continuation
of the current levels.

-----Original Message-----
From: [email protected] [mailto:[email protected]] On
Behalf Of Mike Findlay
Sent: Sunday, December 12, 2010 2:39 PM
To: DADL (off topic)
Subject: Re: [DADL-OT] Obama Understands Economics in Spite of Himself

Historically lower tax rates correlate to higher tax revenues.  The current 
deal doesn't have any deduction take aways or loop hole closures does it? 
Whether it is scientific enough to say lower tax rates cause higher revenues

I don't know, but there is a certain amount of common sense in it.

When rates are perceived as high people actively seek ways to avoid paying 
taxes, including not investing in potential money making ventures.  If a 
project carries a relative amount of risk it may not be worth attempting if 
you are going to end up giving 40% of your potential profit away.  OTOH, if 
tax rates are perceived as low you are more willing to take the same risk. 
Any horse racing van or poker player for that matter, understands the 
concept - the potential reward has to justify the risk, if it doesn't you 
aren't going to bet your money.

What drives me nuts is those who say maintaining tax levels at there current

rates will increase the deficit.  ??  If revenue is the same the deficit, 
(budget), will be the same unless spending increases................ oh how 
silly of me I thought we could actually a year or two without increasing 
spending.

Mike F.



-----Original Message----- 
From: Bruce Geerdes
Sent: Sunday, December 12, 2010 3:51 PM
To: DADL (off topic)
Subject: Re: [DADL-OT] Obama Understands Economics in Spite of Himself

> Did you catch that? "[T]o lower rates and raise revenues." It is the 
> reality of that negative correlation - and not a desire to comfort the 
> rich at the expense of the poor - that lies behind the proposal to keep 
> the Bush tax cuts in place on higher incomes.

Not necessarily. Another way, and the way I understood that they are
pursuing, is to lower rates but take away a lot of current deductions
and loopholes, thus raising revenue.

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