Outstanding posts you two, thanks.
For all those who decry raising taxes, I also ask: What are the alternatives? As Capricious pointed out, the money has already been spent!
I decry raising taxes......
Seriously, we have to distinguish between "raising taxes" and "raising tax rates". When the cap gains tax is lowered, tax receipts increase.
Bill Clinton widely gets credit for "balancing the budget" and creating a surplus. But...it is interesting to go back and examine the route he took to get us there. He initially raised tax rates and tax receipts increased. But in 1997, he lowered rates and increased tax receipts and along with a modicum of spending restraint, we had a surplus.
Bush lowered tax rates in 2003 and guess what happened? Tax receipts increased. The most dramatic evidence however was when Reagan lowered the top tax rate from 70% to 28%. Of course, spending increased at an even faster rate.
Margaret Thatcher accomplished a similar lowering of tax rates in the UK. I don't remember the top tax rate but when the Beatles first starting making the big bucks, it was 95%...
"Here's one for you nineteen for me..."
Unfortunately, when taxes are discussed, the two major parties turn it into a huge fight along the lines of class warfare. We need a leader who will put the country first. At this point, I am not sure who that is. Maybe a leader will emerge from the debates.
