The real cause of deficits is not a shortage of revenue. It’s caused by out of control spending by our rulers.

The DemonRats are doing what they can to sabotage any chance for economic recovery.

The deficit is big enough to take care of itself – Contrary to the Left’s propaganda claiming that tax rate cuts will increase the size of the Federal budget deficit, the opposite is true.  Lower tax rates result in much more incentive for people to generate taxable income, with much higher tax revenues for our rulers to spend. The Reagan tax cuts more than doubled Federal revenues; so this has been proven in our real world.  Anyone who says this isn’t true is about as trustworthy as CNN or the New York Times, and should not be relied on at all.

In fact this basic economic concept isn’t anything new.  Rush Limbaugh has been receiving a lot of flack from DemonRats for daring to play an actual sound clip from 1962 of President John F. Kennedy touting the need for tax rate cuts to stimulate the economy.  Current members of the JackAss Party are offended that JFK’s words are being used to support what is now a GOP concept, lower tax rates.  When asked about this diversion from the ideas of JFK, his brother, Teddy tries to defend the current hypocrisy by claiming that things were different back then. The 90% top income tax rate was confiscatory; but today’s rates are just fine according to Teddy.  As Stephen Moore explains, that isn’t the case.  Put into perspective, our current effective tax rates, especially the two levels of tax on corporate income, are just as confiscatory as the rates were in 1962, and a reduction of those rates is just as important for the economic vitality of the country as they were when JFK advocated them 41 years ago.

The claim that the tax cuts that Bush enacted in 2001 caused the current deficit are completely bogus.  They were so back end loaded that the actual amount of tax savings so far has been a tiny drop in the bucket.  As I said back when they were passed, waiting for ten years for the cuts to take effect was a cruel and stupid joke.  What we need to really get the economy moving is all of those tax reductions right now.

Bloomberg to New York: Drop Dead
The mayor tries to destroy the city in order to save it.

Bloomberg won’t be able to tax his way out of hard times – How can somebody, especially a capitalist,  be so obtuse when it comes matters of raising taxes or trimming the fat?  Nurse Bloomberg will definitely be a one term mayor, if he lasts even that long.

Counting on Bush tax slash – What nerve.  Nurse Bloomberg is rooting for Bush’s tax cut to pass so he can raise taxes on New Yorkers without them feeling it.

No, New York, You Don’t Pay Highest Taxes

Tax Cut Debate Moves to Senate Floor

Tax Cut Debate Returns to Senate

Senate set to futz with tax bill

Dubya takes tax cut show on the road

Bush using popularity to sell tax cuts

Bush Urges Workers to Press for Tax Cuts

Snow Favors Tax Cut For ‘Soggy’ Economy

Snow: Tax Cut Needed for ‘Soggy’ Economy

Senate Finance has altered the Bush plan from recognition

California taxpayers hostile to Bush plan
Long-term deficits, mortgage rise feared – They’re swallowing the Left’s bogus propaganda about the effects of tax rate cuts out there in the PRC.

THE TAX-CUT DEBATE: How Much More Can The System Take?

Senate tax-cut debate postponed until Wednesday

Comparing the three different plans for changing how corporate dividends are taxed, as proposed by Bush, the House and the Senate.  We’ll most likely end up with some kind of Frankenstein’s monster hybrid of these.

Coverage of the Tax Cut Bill Passed By The House

Boston Globe

Washington Post

New York Times

Los Angeles Times

There is still a lot of haggling to go on between the House and Senate versions.  When we get down to a bill that will become law, I will be discussing the ways in which people can exploit the new rules to their best advantage ASAP.  I have been working on several strategies that could save some serious money for people.  However, we need to see which version of the tax law makes it to Bush’s desk before deciding which plan is most practical.