Re: [FairfieldLife] Re: Where is Mr. M.DIXON?

Wed, 30 Nov 2005 06:30:41 -0800

In a message dated 11/29/05 10:08:02 P.M. Central Standard Time, [EMAIL PROTECTED] writes:
Actually, Reaganomics was such a failure that Bush Senior had to raise taxes
in order to offset some of the damage. Taxes will again have to be raised to
cope with the disaster that G. W. Bush's policies have led to.
Wrong Feste, Reagan tax cuts more than doubled income to the treasury as the economy grew. What grew even faster was federal spending. Reagan insisted on increased military spending to make up for Carters slashes and also to bankrupt the Soviets. Congress increased spending on their pet projects to get reelected. Together, their spending out grew the increased revenue caused by tax cuts.Bush never had to increase taxes, he did it out of a spirit of compromise with the democratic leadership, something a wise leader should never seek. If you recall, Bush agreed with Tip O'neal, I believe, that for ever dollar raised in taxes, the congress would cut their spending by either the same amount or even double. Bush broke his vow of no new taxes, costing him reelection, signed the new tax bill and Congress never followed through on their promise to cut the spending. The new taxes sent the country into a minor recession which it started coming out of months before the election. Government revenue before Reagan's tax cut was about 500 billion a year, before taxes were raised again it had  grown to about a trillion dollars a year. Tax cuts have caused the economy to grow every time it has been used. The key is to keep congress from increasing the rate of their spending on their pet projects. Something republicans have shown are no better at than democrats. 

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