As Census Data slowly gets leaked out, we are beginning to put the last nail in the coffin of all those who exclaim that high taxes causes bad economies.
The opposite is true… You may remember when Bush took office how he and Cheney began touting the need for the Bush tax cuts. Back then, we all looked around, and said… “What are you talking about? The economy is fine. We have a surplus, let’s pay off some of our debt!”
We had good sense, but not enough votes.
Let’s pretend for a moment that the Bush tax cuts premise is true. If so, then with the cutting of taxes, our incomes should rise…
According to this graph, they didn’t.
Courtesy of Pew Research
Real median Household income fell over the past decade by 2% for the upper income level, 3% for the medium income level, 5% for the lower income level... All levels declined simultaneously for only one reason: we gave massive tax breaks…
Some of you may remember Ross Perot arguing about the deficit we were facing in 1992. I remember Bill Clinton in one of his first fireside chats, telling us the finances of government were worse than expected, and that he would be unable to fulfill his promise to cut taxes, and instead would have to raise them.. Pundits said he was dead in the water… Instead the economy took off. and the top third’s incomes increased by 13%, the middle incomes increased by 11% and the lower incomes increased by 15%!
Increasing taxes is good for the economy.
If you look at this chart, during the entire times Republicans complained about Democratic administrations high taxes, the economy grew decade by decade… But, when given the opportunity to cut taxes, they did, and the economy slumps, and household income decreases…
In case you missed the meaning from that graph. The entire 10 years of the Bush Tax experiment have put America behind where we were in 1996… Fourteen years ago… The entire decade of Republican tax policy, lowered income of the top third by 2%, the middle income levels by 3%, and the lowest income levels by 5%.. The entire Republican tax code made each of these groups poorer.
Currently we have Urquhart and O’Donnell arguing to keep these tax cuts in effect…
American cannot afford another negative decade… We need to raise taxes as did Clinton and get his economy roaring again…
Addendum: ( so why does raising taxes stimulate the economy? Because people aren’t taxed on revenue. They are taxed on profits. If they hide their profit by building additions to their factories, hiring more people, pouring more dollars into R & D, building new office buildings, a lot more people are going to be working…)
One can argue theory, or look at facts. The theories are just that.. Hot air… The facts… we lived through them. Life was better under the Clinton Democrats, than either Bush or Cheney, or whoever was running the country during the first 8 years of this decade.
So America’s choice is simple this election.. Do you want to vote Republican and continue to lose household median income? or wipe Republicanism off the face of the earth, and have your Median household income soar by 15%?
Yes, you are choosing… Just don’t expect the $4 million dollars pouring into this state from somewheres else, to mention what voting for a Republican will actually cost you…
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