Tuesday, May 2, 2017

'Tax Cuts for the Rich'?

Townhall.com ^ | May 1, 2017 | Thomas Sowell 


One of the painful realities of our times is how long a political lie can survive, even after having been disproved years ago, or even generations ago.
A classic example is the phrase "tax cuts for the rich," which is loudly proclaimed by opponents, whenever there is a proposal to reduce tax rates. The current proposal to reduce federal tax rates has revived this phrase, which was disproved by facts, as far back as the 1920s -- and by now should be called "tax lies for the gullible."
How is the claim of "tax cuts for the rich" false? Let me count the ways. More important, you can easily check out the facts for yourself with a simple visit to your local public library or, for those more computer-minded, on the Internet.
One of the key arguments of those who oppose what they call "tax cuts for the rich" is that the Reagan administration tax cuts led to huge federal government deficits, contrary to "supply side economics" which said that lower tax rates would lead to higher tax revenues.
This reduces the whole issue to a question about facts -- and the hard facts are available in many places, including a local public library or on the Internet.
The hardest of these hard facts is that the revenues collected from federal income taxes during every year of the Reagan administration were higher than the revenues collected from federal income taxes during any year of any previous administration.
How can that be? Because tax RATES and tax REVENUES are two different things. Tax rates and tax revenues can move in either the same direction or in opposite directions, depending on how the economy responds.
But why should you take my word for it that federal income tax revenues were higher than before during the Reagan administration? Check it out.
Official statistics are available in many places. The easiest way to find those statistics is to go look at a copy of the annual "Economic Report of the President." It doesn't have to be the latest Report under President Trump. It can be a Report from any administration, from the Obama administration all the way back to the administration of the elder George Bush.
Each annual "Economic Report of the President" has the history of federal revenues and expenditures, going back for decades. And that is just one of the places where you can get this data. The truth is readily available, if you want it. But, if you are satisfied with political rhetoric, so be it.
Before we turn to the question of "the rich," let's first understand the implications of higher income tax revenues after income tax rates were cut during the Reagan administration.
That should have put an end to the talk about how lower tax rates reduce government revenues and therefore tax cuts need to be "paid for" or else there will be rising deficits. There were in fact rising deficits in the 1980s, but that was due to spending that outran even the rising tax revenues.
Congress does the spending, and there is no amount of money that Congress cannot outspend.
As for "the rich," higher-income taxpayers paid more -- repeat, MORE tax revenues into the federal treasury under the lower tax rates than they had under the previous higher tax rates.
That happened not only during the Reagan administration, but also during the Coolidge administration and the Kennedy administration before Reagan, and under the G.W. Bush administration after Reagan. All these administrations cut tax rates and received higher tax revenues than before.
More than that, "the rich" not only paid higher total tax revenues after the so-called "tax cuts for the rich," they also paid a higher percentage of all tax revenues afterwards. Data on this can be found in a number of places, including documented sources listed in my monograph titled "'Trickle Down' Theory and 'Tax Cuts for the Rich.'"
As a source more congenial to some, a front-page story in the New York Times on July 9, 2006 -- during the Bush 43 administration -- reported, "An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year." Expectations, of course, are in the eye of the beholder.

Hungary’s new border wall is working spectacularly well

American Thinker ^ | May 1, 2017 | Thomas Lifson 

Hungary's second border fence has just been completed in the southern town of Asotthalom. The 96-mile long, 14 ft. tall double-line of defense doesn't look too intimidating from a distance. Go a little closer and you'll notice several layers of razor-wire capable of delivering electric shocks, cameras, heat sensors and loud speakers ready to tell migrants they're about to break Hungarian law if they as much as touch the fence.

(Excerpt) Read more at americanthinker.com ...

Infosys to hire 10,000 Americans after Trump visa crackdown

Financial Times ^ | May 1, 2017 | Richard Waters in San Francisco 

Infosys, the Indian IT services company that stands to be one of the biggest losers from a US visa crackdown, plans to hire 10,000 Americans in the next two years, according to the company’s chief executive.

News of the hiring spree, due to be announced on Tuesday, is likely to be seen as a win for the White House as it tries to push companies into creating more US jobs. The administration announced a review of the H-1B visa programme a fortnight ago, aimed at stemming the flow of low-cost workers brought in by companies such as Infosys....
(Excerpt) Read more at ft.com ...

Now We Know: It's Liberals Who Are Out-Of-Touch, Arrogant, Smug And Intolerant

Investor's Business Daily ^ | 5/1/2017 | Staff 

Politics: We've been arguing for some time that if you want to find intolerance, extremism, hate and bigotry in this country, it's thriving on the left. The past week provides several bits of fresh evidence of this.
First, there's the ABC News/Washington Post poll published last week that found just 28% think the Democratic Party is "in touch with the concerns of most people in the United States today." Even among Democrats, only slightly more than half (52%) think the party is in touch with people in the country.
It's not as if President Trump or the Republicans do that much better. The poll found that 38% say Trump is in touch, and 32% say Republicans are in touch with the people.
Nevertheless, it's a shocking finding, given that Democrats have spent decades portraying Republicans as out-of-touch extremists who only care about the rich. Or, as newly appointed DNC chairman Tom Perez put it, Republicans "don't give a sh-- about people."
The New York Times fretted in an editorial that "for the first time in memory, Democrats are seen as more out of touch with ordinary Americans than the party's political opponents."
(Excerpt) Read more at investors.com ...

What a difference

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Liberal Logic

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Enough is Enough?

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Change

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Too dumb?

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The media

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She Lost It!

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REGS

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Kickin' Sand

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Berkeley

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LOONIES

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The Wall

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Campus Free Speech

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Targets

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Tax Reform

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We're in the money!

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Climate Change

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