from Gary Meyers www.TMGwealthmanagement.com

In my opinion, dealing with our debt crises should be of paramount importance. It is irrefutable that tax increases cause a subdued economy and greater deficits. This has happened 100% of the time. It is also irrefutable that tax rate reductions have always been stimulative and have resulted in greater total tax revenues available to the government for needed programs.

“From IBD, Jan 25, 2008: New research shows this to be true. In the broadest such study ever, University of California economists Christina and David Romer looked at every tax change in the U.S. after World War II.

Their unambiguous conclusion: “Tax cuts have very large and persistent positive output effects.” Indeed, a tax cut of just 1% boosts GDP by about 3% for several years, they found.

In yet another groundbreaking study, Nobel Prize winner James Mirrlees found that the best tax system was one that minimized the burden on the highest, most productive earners — the exact opposite of today’s Democratic dogma.”

Tax rate reductions can, by definition, only be applied to the “non-poor” people that actually pay taxes. So, the next time you hear a candidate claim they need to retract the “Bush tax cuts for the rich”, you can be sure that candidate has little understanding of the correct economic course for this country. The multi-faceted US debt problems are caused by excessive spending, not insufficient taxation. The best candidate, for the economy at least, will be one which restores fiscal spending discipline, efficiency, accountability, and personal responsibility.

tips to Doug Ott

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