Anonymous
Anonymous asked in Politics & GovernmentPolitics · 1 decade ago

Why do Republicans continue to lie about tax cuts working?

When compared to Keynesian economic policies, tax cuts for the rich do not work. You see much greater growth under FDR, JFK/LBJ, and Clinton then you see under Reagan and Bush Jr. For the record, JFK did not cut taxes. It was LBJ who signed the tax cut and it was next to nonexistent. Plot real tax revenues versus time.

Percent increase in real GDP

FDR 177.51% (from 32' to 45')

FDR 88.14% (from 32' to 41', without WWII)

KEN/LBJ 46.00%

CLINTON 33.81%

REAGAN 30.63%

BUSH JR 16.55% (from 00' to 06')

http://www.bea.gov/national/xls/gdplev.xls

Percent increase in inflation adjusted tax revenues:

FDR N/A

CLINTON 57.91%

KEN/LBJ 37.63%

REAGAN 20.16%

BUSH JR 4.44% (assuming predictions up to 2008 hold)

http://www.whitehouse.gov/omb/budget/fy2007/sheets...

Percentage point change in poverty:

FDR N/A

KEN/LBJ -9.40

CLINTON -3.50

REAGAN +0.00

BUSH SR +1.80 (88' to 92')

BUSH JR +1.30 (00' to 05')

http://www.census.gov/hhes/www/poverty/histpov/hst...

Update:

Percent change in inflation adjusted median wage:

NET DOLLARS

FDR N/A

JFK/LBJ N/A

CLINTON +5,825

REAGAN +3,429

BUSH JR -1,273 (00' to 05')

BUSH SR -1,394 (88' to 92')

PERCENT CHANGE

FDR N/A

JFK/LBJ N/A

CLINTON +13.94%

REAGAN +8.62%

BUSH JR -2.67% (00' to 05')

BUSH SR -3.23% (88' to 92')

http://www.census.gov/hhes/www/income/histinc/h06a...

Jobs created:

PERCENT CHANGE

FDR 95.69% (32' to 45', NYT: DERIVED FROM AVERAGE ANNUAL RATE OF +5.3%)

FDR 40.04% (39' to 45', no pre-39'gov data found yet)

JFK/LBJ 29.35%

Clinton 20.73%

Reagan 17.69%

Carter 12.81% (76' to 80')

Bush Sr 2.42% (88' to 92')

Bush Jr 1.55% (00' to 06')

NET MILLIONS

Clinton 22.746

FDR 18.310 (32' to 45', NYT)

JFK/LBJ 15.755

Reagan 16.102

FDR11.980 (39' to 45', no pre-39' gov data found yet)

Carter 10.339 (76' to 80')

Bush Sr 2.592 (88' to 92')

Bush Jr 2.059 (00' to 06')

http://data.bls.gov/PDQ/servlet/SurveyOutputServle...

9 Answers

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  • 1 decade ago
    Favorite Answer

    For tax cuts to have their full impact on the economy is takes approximately 6 years for it to come full cycle. This explains why the democratic presidents during their terms experienced more growth than the republican presidents. By the time the tax cuts come full circle a democratic president is in office.

    I think that tax cuts could be more fairly targeted, but when you cut taxes for corporations it gives them more working capital to invest in infrastructure, R & D, and profitsharing. Infrastructure spending boosts the economy and creates more jobs. R & D spending boosts the economy and creates more jobs. Profitsharing boosts the economy(which benefits all) through the people who received the dividends, and the money goes full circle faster than it otherwise would have by going through the government coffers where there is much corruption and waste.

    The same effects can be said about middle and upper class tax cuts. The more money they have to spend, the more money there is that goes back into boosting the economy which creates more jobs which again boosts the economy.

  • flossi
    Lv 4
    4 years ago

    could no longer have the money for the recent mandatory clinical wellbeing coverage and/or further regulations that the Obama White domicile has imposed on them. each and every person isn't spending because of the fact this united states of america is bleeding jobs. Now initiate taxing on suitable that---Get Republicans back in congress time!

  • 1 decade ago

    You use alot of numbers that explain nothing.....yet fail to mention that Clinton sent more jobs out of the United States than any President during the last century.

    NAFTA, anyone?

    China's most favored nation status?

  • Anonymous
    1 decade ago

    The tax cuts applied to every income tax bracket. One day when you grow up and pop mommas tit out of your mouth - you will understand better. I bet you are one of the learned university types living off mom and dads or dad and dads money. Get out into the real world for a change. Once you do get a job feel free to pay more taxes voluntarily to the government. They will gladly take it.

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  • 1 decade ago

    REPUBLICANS HAVE ZERO ANSWERS.

    Only excuses.

    I challenge all of you to verify these percent changes for yourself. Go ahead. Prove it to yourselves. The economy does in fact do better with Democratic keynesians in office.

    To the person who brought up NAFTA:

    SENATE

    Measure Number: H.R. 3450 (North American Free Trade Agreement Implementation Act NAFTA Worker Security Act )

    Measure Title: A bill to implement the North American Free Trade Agreement.

    YES

    34 Republicans

    27 Democrats

    NO

    28 Democrats

    10 Republicans

    http://www.senate.gov/legislative/LIS/roll_call_li...

    ----------

    HOUSE OF REPRESENTATIVES.

    BILL TITLE: NORTH AMERICAN FREE TRADE AGREEMENT IMPLEMENTATION ACT

    YES

    132 Republicans.

    102 Democrats

    NO

    43 Republicans

    156 Democrats

    http://clerk.house.gov/evs/1993/roll575.xml

    ----------

    UNITED STATES SENATE

    BILL TITLE: A bill to implement the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA)

    YES

    43 Republicans

    11 Democrats

    1 Independent

    NO

    33 Democrats

    12 Republicans

    http://www.senate.gov/legislative/LIS/roll_call_li...

    ----------

    HOUSE OF REPRESENTATIVES

    BILL TITLE: Dominican Republic-Central America-United States Free Trade Agreement Implementation Act (CAFTA)

    YES

    202 Republicans

    15 Democrats

    NO

    27 Republicans

    187 Democrats

    1 Independent

    http://clerk.house.gov/evs/2005/roll443.xml

  • Anonymous
    1 decade ago

    JFK made the biggest tax cut for the rich in history. It works every time. Try again.

  • So it makes them feel like they've done something good to contribute to the little guys plight. Then they can sleep well at night after they count the heaping cash in their vaults.

  • 1 decade ago

    They're not. You just don't understand the economy, or how it works. You can take a class to learn about it.

  • 1 decade ago

    Because they and their friends are getting fat from the cuts.

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