Tuesday, July 11, 2006

Taxes 101

It has long been known that lowering taxes really is a good thing for everyone. Even my most liberal friends know this (even though it is tough for them to admit). However today we got the kind of economic report that we like, which reflects the truth behind this VRWC propoganda.

Today's report from the president shows that GDP is up, tax dollars collected IS UP, spending is lower than expected (by quite a lot) and the budget deficit is lower relative to GDP. The biggest misconception is that tax breaks only benefit the rich. But the more money there is in the hands of the people, the more we all benefit. Even lower wage earners who pay less taxes (and reap smaller gains) because often times their jobs depend on higher wage earners willingness and ability to spend and reinvest. The biggest problem we face isn't the inability of our leaders to understand this, it's the peoples patience with letting such a system work. It takes time for that money to work it's way through the system, years in fact. But given the opportunity it does and this has been shown more than once. That being said, we still need to control our spending and watch the budget deficit but as long as our debt-income ratio is improving and we manage that deficit the economy will be in good shape. Even with oil at $75 a barrell.. but that is another story.

Point is, whether you like him or not, the presidents economic policy was right and will continue to be. Make those tax cuts permanent and let's get on with business...

1 comment:

Texan in Wisconsin said...

Amen, brother.