Originally Posted by CPWILL
This crap is really complex, which is why even the math and policy geniuses at the CBO are so often off.
Occam's razor.

I think you are trying way too hard to make a bunch of complicated theories work to support a desired condition - low taxes and less regulation.

Here is one fact that is very annoying - why all the economic stimulus manipulations during a time of a booming economy? Tax cuts (strongly favoring them folks with money) and low interest rates being the most obvious? Why aren't they working to reduce the deficit? Isn't it natural to pay off debts when you are flush with cash?

It is a fact that the artificial stimuli did not add anything to the booming economy, but not taking revenue DID NOT do anything to boost revenues. I think jgw may have pegged that one - tariffs. Tariffs have brought in approximately as much revenue as the tax cuts threw away, but they have only harmed businesses (mine is one of them - thousands of dollars thrown away, for no benefit).

Then there is this little piece of evidence about high taxes and the economy - note the general correlation between high rates and prosperous times (and low national debt).

[Linked Image from bradfordtaxinstitute.com]

We have morphed into a debt-based economy - that is the problem. And you can't just blame spending. Some spending is a good investment with a long term positive ROI... some spending is really pointless and destructive. I don't see our spenders taking that into account, mostly because the spending is controlled by them that has most of the money, and they are shortsighted and greedy.

You never change things by fighting the existing reality.
To change something, build a new model that makes the old model obsolete.
R. Buckminster Fuller