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Jackoroe, you help turn people more liberal with this sort of simple-minded, inane response. Palemale is 'way ahead of you on this one.
The way you respond, I'd have to assume you don't think that watering a lawn makes it green -- it just gets it wet, right?
For one thing, those high marginal rates led to growth BECAUSE no one paid them. Think about it.
Let's put this dreamy eyed bullshit about how swell things were during the Eisenhower administration to rest, once and for all.
Eisenhower's fiscal conservatism carried a heavy price. There were three recessions during his administration--July 1953 through May 1954, August 1957 through April 1958, and April 1960 through February 1961--and real growth of the gross domestic product averaged just 2.5 percent over those eight years. In large part, that sluggish growth was due to high tax rates, not just on the wealthy but on the middle class as well. In fact, as Figure 2 shows, increasing tax rates on the wealthy led to increases in tax rates on middle-class incomes (defined as $50,000 for a family of four in 1992) as well.(40)
Read it carefully. Three recessions and GDP growth of a pathetic 2.5% over his eight year term of office. And what did his successor, John F. Kennedy do about this situation? Well, what a surprise! He cut taxes!
On January 24, 1963, Kennedy sent his tax cut proposal to Congress. It called for reducing the top marginal income tax rate from 91 percent to 70 percent, reducing the lowest income tax rate from 20 percent to 14 percent, and cutting the corporate income tax rate from 52 percent to 47 percent.(42) Interestingly, Kennedy's tax plan was opposed by some of his more liberal advisers, such as John Kenneth Galbraith.(43) They favored stimulating the economy by increasing government spending. But Kennedy held firm, not just on the need for tax cuts, but on cuts in marginal tax rates.
Got that? Cut tax rates on everybody, including the rich. Now pay attention, it gets interesting right about here. Now every good liberal knows that cutting taxes reduces revenue to the government. Especially among those rich folks. Guess what! That's bullshit! Revenues, once Kennedy's tax cuts took effect, actually increased! Even from those hated rich.
Table 8
Tax Revenue from the Wealthy, 1961-66 ($ Millions)
Income Class 1961 1962 1963 1964 1965
$100,000 - $500,000 1,970 1,740 1,890 2,220 2,752
$500,000 - $1 million 297 243 243 306 408
Over $1 million 342 311 326 427 603
http://www.cato.org/pubs/pas/pa-192.html
Now that we've exposed that high taxes caused prosperity during the Eisenhower years as bullshit, what else you got?
Oh and BTW, as someone who has a lawn but hates taking care of it, I also know that too much water is as bad as not enough.









