"Four decades ago, while working for Rep. Jack Kemp (R-N.Y.), I had a hand in creating the Republican tax myth. Of course, it didn’t seem like a myth at that time — taxes were rising rapidly because of inflation and bracket creep, the top tax rate was 70 percent and the economy seemed trapped in stagflation with no way out. Tax cuts, at that time, were an appropriate remedy for the economy’s ills. By the time Ronald Reagan was president, Republican tax gospel went something like this:
The tax system has an enormously powerful effect on economic growth and employment."
The argument that lowering taxes helps the economy has nothing to do with whether someone is a republican or democrat. He instantly changes the argument about the effectiveness of taxes to one that is about who's tax plans is better. We need to get away from this team format. What if there is a third idea that is better than both of theirs.
[/QUOTE]He is not making the argument that the 'effectiveness of taxes' has anything to do with whether somebody is a Republican or Democrat. He is, in fact, making the same argument you are. You're just so blinded by your own biases that you see anything framed politically as useless and don't have the reading comprehension to understand the actual thesis of the article you're criticizing.
"By the time Ronald Reagan was president, Republican tax gospel went something like this:
The tax system has an enormously powerful effect on economic growth and employment."
High taxes and tax rates were largely responsible for stagflation in the 1970s.
Reagan’s 1981 tax cut, which was based a bill, co-sponsored by Kemp and Sen. William Roth (R-Del.), that I helped design, unleashed the American economy and led to an abundance of growth."
Ok again what does what the republican want to do with taxes have to do with the tax system itself.
He's explaining why his opinion is credible. By pointing out that he was one of the architects of a bill that reduced taxes and spurred economic growth, he's showing that he does, under some circumstances, believe in the value of tax cuts.
"Based on this logic, tax cuts became the GOP’s go-to solution for nearly every economic problem. Extravagant claims are made for any proposed tax cut. Wednesday, President Trump argued that “our country and our economy cannot take off” without the kind of tax reform he proposes. Last week, Republican economist Arthur Laffer said, “If you cut that [corporate] tax rate to 15 percent, it will pay for itself many times over. … This will bring in probably $1.5 trillion net by itself.”
That’s wishful thinking. So is most Republican rhetoric around tax cutting. In reality, there’s no evidence that a tax cut now would spur growth."
OK right here, what? This is what I mean when I say the media cherry picks data or quotes of people to straw man the argument into something it has nothing to do with. You can't just simplify the effectiveness of lowering taxes into just being about the corporate tax rate. There is way more that goes into taxes than the corporate tax rate. The tax of citizens as well as the other measures you can use such as deregulation and cutting government spending can have a huge effect into the effectiveness. Again they're leaving out a number of key points when it comes to taxes.
He is not in any way shape or form saying that lowering taxes is only about the corporate tax rate. He addresses several other factors throughout the piece. You even quote him doing so. In fact, the entire point he's making is that lowering taxes is not a one-size fits all solution and doing so only spurs growth if other factors are accounted for.
Again, he's making the same point you are.
Next off he says
"Moreover, GOP tax mythology usually leaves out other factors that also contributed to growth in the 1980s: First was the sharp reduction in interest rates by the Federal Reserve. The fed funds rate fell by more than half, from about 19 percent in July 1981 to about 9 percent in November 1982. Second, Reagan’s defense buildup and highway construction programs greatly increased the federal government’s purchases of goods and services. This is textbook Keynesian economics.
[Why would anyone in Puerto Rico want a hurricane? Because someone will get rich.]"
The interest rate and how you apply it can effect the economy. Yet the writer just points how republicans don't think about it without having any evidence of that being true. He also does the same thing he accuses them of and blatantly lies. How does Keynesian economics have anything to do with what political side you're on. I am a conservative and I hate Keynesian economics. Still struggling to see how we have gotten to the conclusion that taxes are bad.
What is he blatantly lying about?
Further, he's not arguing that Keynesian economics necessarily has anything to do with party. He's saying that the Reagan tax cuts, without reduced interest rates and increased infrastructure and defense spending wouldn't have spurred the same level of growth.
You're welcome to disagree with that. But as is, you're not engaging around his actual points, you're just calling him a liar and accusing him of playing partisan politics despite the fact that he's a Republican writing an article critical of Republican tax policy.
"Third, there was the simple bounce-back from the recession of 1981-82. Recoveries in the postwar era tended to be V-shaped — they were as sharp as the downturns they followed. The deeper the recession, the more robust the recovery."
He still has yet to talk about the interworking of taxes and of what he would propose. He literally is just talking about what happened in the economy and not tying it to taxes at all.
He has talked about that, actually. In fact, it's all he's talked about. He's saying that the policy he was the architect of -- which paired tax cuts with increased infrastructure/defense spending and interest rate cuts -- is a superior alternative to the Trump proposal which solely cuts taxes. One of his key points is that cutting taxes without taking other factors into account provides a quick political victory but is poor policy.
So again, he's agreeing with you that tax policy requires reckoning with a wide variety of variables.
"Finally, I’m not sure how many Republicans even know anymore that Reagan raised taxes several times after 1981. His last budget showed that as of 1988, the aggregate, cumulative revenue loss from the 1981 tax cut was $264 billion and legislated tax increases brought about half of that back."
Nothing to do with how you can use taxes to benefit the economy. Is just saying what republicans do is wrong. They might be wrong but that doesn't mean lowering taxes is good or bad. We have learned nothing about how taxes work and only about why the way republicans want it to work is wrong.
His point here is simple: Reagan cut taxes to spur economic growth but recognized that you couldn't maintain such a low rate indefinitely as it decreased revenue too much. You can spur growth with tax cuts but it's wise, in his opinion, to recoup that revenue once the economy is in better shape.
What I don't understand is this: Republicans currently control every branch of government. Their tax policy is now our tax policy and that's what this writer is responding to. He's debating the efficacy of our current tax policy. You think it's too partisan to discuss tax policy merely because said policy was implemented by a political party?
"Today, Republicans extol the virtues of lowering marginal tax rates, citing as their model the Tax Reform Act of 1986, which lowered the top individual income tax rate to just 28 percent from 50 percent, and the corporate tax rate to 34 percent from 46 percent. What follows, they say, would be an economic boon."
Ok the Tax reform act of 1986 has nothing to do with whether cutting taxes helps or hurts the economy. There are other factors that you have to implement and to just simplify it to this is embarrassing.
You cite your interest in history as relevant to the discussion, but when this author cites the historical impact of a particular tax policy you deem it irrelevant.
And of course there are other factors you have to implement. That's the entire point of his argument.
OK right here!!!!!!!!!!!!!!!!!!!!!!!!!!! You could ignore all the other flaws and just read this!!!
"Indeed, textbook tax theory says that lowering marginal tax rates while holding revenue constant unambiguously raises growth."
He admits taxes can have a positive impact on growth!!!!
He admitted that in the first paragraph. He is, if you recall, the architect of a tax policy that used tax reduction to spur growth. This isn't some gotcha. It's actually the thesis of his entire argument.
Your reading comprehension is terrible.
Then once again he changes the argument about whether taxes could help the economy to about the 1986 tax reform act being bad.
"But there is no evidence showing a boost in growth from the 1986 act. The economy remained on the same track, with huge stock market crashes — 1987’s “Black Monday,” 1989’s Friday the 13th “mini-crash” and a recession beginning in 1990. Real wages fell."
No, he doesn't change the argument. His argument is very consistent, you just don't understand enough about the 1986 tax act to understand why.
Strenuous efforts by economists to find any growth effect from the 1986 act have failed to find much. The most thorough analysis, by economists Alan Auerbach and Joel Slemrod, found only a shifting of income due to tax reform, no growth effects: “The aggregate values of labor supply and saving apparently responded very little,” they concluded."
Again notice we aren't talking about cutting taxes we're talking about the 1986 tax reform act. They may have cut taxes then but there are a million other factors you have to consider.
That there are other factors you need to consider is exactly his point. Your reading comprehension is terrible.
Do I even need to keep going. This is fake news. I don't know how much more clear I can make it. I will finish demolishing this article but I'm not doing the others. This is a waste of my time.
Back to fake news. Again, this is opinion, and opinion you're free to disagree with. But because you disagree with it doesn't make it fake. He has valid opinions and supports them with evidence and data.
You, on the other hand, provide no evidence or data. You just make vague statements like "there are other factors to consider" and think that somehow means you're "demolishing an article."
All you've done is demonstrate you didn't understand it. Because your reading comprehension is terrible.
"The flip-side of tax cut mythology is the notion that tax increases are an economic disaster — the reason, in theory, every Republican in Congress voted against the tax increase proposed by Bill Clinton in 1993. Yet the 1990s was the most prosperous decade in recent memory. At 37.3 percent, aggregate real GDP growth in the 1990s exceeded that in the 1980s."
That has no reason to do with why I hate tax increases. I hate them because it takes the money I work for and therefor gives me less to spend on the things I want and more with the things the government wants. I at least know what I want, how do we know there isn't corruption in the people in government that we don't know about. Also if you raise taxes that gives the government more money which effectively gives them more power. I, as a conservative want the federal and state governments to have less power because the more power they have the too big and complex it gets for people to understand, which in turn makes it easier for corruption.
Your point here, I guess, is that this author should have the exact same opinions as you?
"Despite huge tax cuts almost annually during the George W. Bush administration that cost the Treasury trillions in revenue, according to the Congressional Budget Office, growth collapsed in the first decade of the 2000s. Real GDP rose just 19.5 percent, well below its ’90s rate."
Why is he falsely attributing growth decline to taxes? Strawman!
He's using this example to support his thesis, which is that tax cuts do not necessarily spur growth.
"We saw another test of the Republican tax myth in 2013, after President Barack Obama allowed some of the Bush tax cuts to expire, raising the top income tax rate to its current 39.6 percent from 35 percent. The economy grew nicely afterward and the stock market has boomed — up around 10,000 points over the past five years."
Again he falsely attributes the gains in the economy to taxes. I could also argue in many ways the economy is worse off than it was in 2008 so by saying the economy grew nicely is a joke to make. The economy has nothing to do with the stock market.
Then make that argument. Seriously. I would really, really, really love to see you make the argument that the economy of 2008, the year the global economy collapsed, was better than it was in 2016.
And then once you're done, make sure you come back here and lecture others about intellectual honesty some more.
Seriously. Please make that argument.
"Now, Republicans propose cutting the top individual rate to 35 percent, despite lacking evidence that this lower rate led to growth during the Bush years, and a drop in the corporate tax rate to just 20 percent from 35 percent. Unlike 1986, however, this $1.5 trillion cut over the next decade will only be paid for partially by closing tax loopholes."
Ok, nothing to do with how taxes work.
You make a really good argument here and support it with a lot of strong data. You're right and not at all hypocritical to criticize others in this regard.
"Republicans’ various claims are irreconcilable. One is that the rich will not benefit even though it is practically impossible for them not to — those paying the most taxes already will necessarily benefit the most from a large tax cut. And there aren’t enough tax deductions, exclusions and credits benefiting the rich that could be abolished to offset a cut in the top rate."
Yes this might be true but there are better ways out there than the republicans. Why does he continue to make this political.......
The Republicans control all three branches of the government and just implemented the tax policy he's critical of. He's "making it political" because politicians implement policy and policy has real world impact. He's concerned, for various reasons, about the impact said policy might have and therefore he's speaking out against politicians and their policy.
"Even if they had released a complete plan — not just the woefully incomplete nine-page outline released Wednesday — Republicans have failed to make a sound case that it’s time to cut taxes."
What does this have to with the issue of taxes? I agree with Kaepernick, yet he makes an issue about taxes into an issue about race?? That's abhorrent. This is fake news!!!!!! If republicans haven't made a good case then why don't we find someone else that does instead of just assuming this means the left team wins.
Just to reiterate: your reading comprehension's terrible. You know how I know? You copy and pasted a link to a Kaepernick article that was posted alongside the article you're critiquing and thought it was part of the article itself. The article you're "demolishing" doesn't mention Kaepernick or race anywhere. And you weren't following the author's argument well enough to recognize that a headline about Kaepernick was unrelated.
Seriously, your reading comprehension's terrible. Like comically so. You should be embarrassed right now. I mean, you're sitting here trying to position yourself as a tax policy expert that's torn apart this 'fake news' article and you don't even understand it well enough to recognize the difference between an unrelated link and the author's point.
[QUOTE=TheBobcatBandit]
This is more of the same as the rest of the article. I have made my criticism about what he is doing clear.