Author Topic: Why liberals don't like the tax cut deal -- in graphs  (Read 4564 times)

tonymctones

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Re: Why liberals don't like the tax cut deal -- in graphs
« Reply #50 on: December 11, 2010, 08:34:28 AM »
again - other than just claiming it do you have some actual proof.

Overlay the former tax structure on the 2006 AGI and tell me if you think we would have a larger or smaller deficit


did you try clicking on the link?


Myth #2: The Bush tax cuts substantially reduced 2006 revenues and expanded the budget deficit.
Fact: Nearly all of the 2006 budget deficit resulted from additional spending above the baseline.

Critics tirelessly contend that America's swing from budget surpluses in 1998-2001 to a $247 billion budget deficit in 2006 resulted chiefly from the "irresponsible" Bush tax cuts. This argument ignores the historic spending increases that pushed federal spending up from 18.5 percent of GDP in 2001 to 20.2 percent in 2006.[4]

The best way to measure the swing from surplus to deficit is by comparing the pre-tax cut budget baseline of the Congressional Budget Office (CBO) with what actually happened. While the January 2000 baseline projected a 2006 budget surplus of $325 billion, the final 2006 numbers showed a $247 billion deficit-a net drop of $572 billion. This drop occurred because spending was $514 billion above projected levels, and revenues were $58 billion below (even after $188 billion in tax cuts). In other words, 90 percent of the swing from surplus to deficit resulted from higher-than-projected spending, and only 10 percent resulted from lower-than-projected revenues.[5] (See Chart 1.)



Furthermore, tax revenues in 2006 were actually above the levels projected before the 2003 tax cuts. Immediately before the 2003 tax cuts, the CBO projected a 2006 budget deficit of $57 billion, yet the final 2006 budget deficit was $247 billion. The $190 billion deficit increase resulted from federal spending that was $237 billion more than projected. Revenues were actually $47 billion above the projection, even after $75 billion in tax cuts enacted after the baseline was calculated.[6] By that standard, new spending was responsible for 125 percent of the higher 2006 budget deficit, and expanding revenues actually offset 25 percent of the new spending.

The 2006 tax revenues were not substantially far from levels projected before the Bush tax cuts. Despite estimates that the tax cuts would reduce 2006 revenues by $188 billion, they came in just $58 billion below the pre-tax cut revenue level projected in January 2000.[7]

The difference is even more dramatic with the pro-growth 2003 tax cuts. The CBO calculated that the post-March 2003 tax cuts would lower 2006 revenues by $75 billion, yet 2006 revenues came in $47 billion above the pre-tax cut baseline released in March 2003. This is not a coincidence. Tax cuts clearly played a significant role in the economy's performing better than expected and recovering much of the lost revenue.


tonymctones

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Re: Why liberals don't like the tax cut deal -- in graphs
« Reply #51 on: December 11, 2010, 08:36:11 AM »
read the last sentence of the above post VERY VERY VERY CAREFULLY STRAWMAN... ;)

Straw Man

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Re: Why liberals don't like the tax cut deal -- in graphs
« Reply #52 on: December 11, 2010, 08:42:15 AM »
did you try clicking on the link?

I've read the list before and I've read all the counter argument

why doesn't Obama just explain that his tax compromise won't really add 900 billion to the deficit and will instead actually increase tax revenue and lower the deficit

problem solved

tonymctones

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Re: Why liberals don't like the tax cut deal -- in graphs
« Reply #53 on: December 11, 2010, 08:45:41 AM »
I've read the list before and I've read all the counter argument

why doesn't Obama just explain that his tax compromise won't really add 900 billion to the deficit and will instead actually increase tax revenue and lower the deficit

problem solved
please present your counter arguments for me...

good question, my guess would be it goes against his core liberal beliefs although its clear at least via the heritage foundation(a pretty reputable establishment) that those beliefs are wrong...either that or he is just ignorant of the facts...

Straw Man

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Re: Why liberals don't like the tax cut deal -- in graphs
« Reply #54 on: December 11, 2010, 10:09:52 AM »
please present your counter arguments for me...

good question, my guess would be it goes against his core liberal beliefs although its clear at least via the heritage foundation(a pretty reputable establishment) that those beliefs are wrong...either that or he is just ignorant of the facts...

LOL !

you think that's a good question?

maybe Obama doesn't have access to interweb or maybe the White House blocks access to neocon "think tank" websites

still though it sure would be helpful if Obama could just explain that the 900 billion shortfall really won't exist

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Re: Why liberals don't like the tax cut deal -- in graphs
« Reply #55 on: December 11, 2010, 10:59:24 AM »
Neither taxing or cutting taxes helps the economy.

They're both red herrings... True, the problem is the spend issue, which NEITHER SIDE will fucking stop.

Why are you guys nut huggers on blue or red? It's asinine. Guaranteed ain't no money getting saved anywhere anytime.

Keep on arguing amongst yourselves because that's exactly what they want.

QFT
I hate the State.

tonymctones

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Re: Why liberals don't like the tax cut deal -- in graphs
« Reply #56 on: December 11, 2010, 12:15:53 PM »
LOL !

you think that's a good question?

maybe Obama doesn't have access to interweb or maybe the White House blocks access to neocon "think tank" websites

still though it sure would be helpful if Obama could just explain that the 900 billion shortfall really won't exist

Again please give me the counter arguments to these points...

LOL first of all the supposed 900 billion isnt from just the tax cuts its from the extension of jobless benefits as well...

facts are facts buddy, unless you have facts to dispute what ive posted please clam up about the 900 billion and how tax cuts add to the deficit  ;)

tonymctones

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Re: Why liberals don't like the tax cut deal -- in graphs
« Reply #57 on: December 12, 2010, 06:14:55 AM »
Again please give me the counter arguments to these points...

LOL first of all the supposed 900 billion isnt from just the tax cuts its from the extension of jobless benefits as well...

facts are facts buddy, unless you have facts to dispute what ive posted please clam up about the 900 billion and how tax cuts add to the deficit  ;)
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