Say Anything Blog

[...] My favorite blog, other than this one of course, is probably Say Anything. They have another great post about tax revenue. The U.S. Treasury Department’s Monthly Treasury Statement for August 2005 (.pdf) is out. From October 2004 through August of 2005, federal spending in the United States rose 6.8%, relative to the same time frame last year. Meanwhile, revenues coming into the government from October 2004 through August of 2005 rose by 13.7%, relative to the same time frame last year.The good news: the growth of government receipts is far outpacing the growth of government spending.The bad news: to begin with, government spending was already much larger than government receipts.Thus, we’re still running a deficit. Just not as large as projected.Here is Rob’s analysis...Now remember that this acceleration in federal tax receipts is coming after the President’s cut taxes. Which means that since the federal government cut the amount in taxes citizens are paying the flow of cash into the treasury has increased.Keep this in mind while big-spending Democrats how tax cuts will take money away from needy Katrina victims. Tax cuts not only give a boost to our economy (decreasing unemployment, among other things) but also provides our government with more money.Now what, exactly, is wrong with that? To answer your question, Rob… Iraq is Vietnam!! Bush hates black people!! Haliburton is doing something!! Bush is creating hurricanes and sending them to New Orleans!! (Help me, lefties… what have I left out?)UPDATE: Almost forgot… no thanks to Sen. Conrad. [...]

Nothing… except it runs counter to the Dem’s argument.

Now if we could convince either party to cut spending…

Man asks an economist “What is two plus two”.
The economist closes the door, pulls the curtains turns on a radio and whispers in the mans ear “What do want it to be?”

That was a joke Rob.

Federal spending in the United States rose 6.8%

revenues coming into the government from October 2004 through August of 2005 rose by 13.7%

Ergo, revenues rose because of Gov’t spending.
Economic effects are not simple.

That doesn’t make sense, Woofie.  Revenue growth is outpacing spending.

When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

-- Thomas Jefferson

Rob’s recently listened-to songs:

Amen, Hoodlumman.

Woof, do you have anything to suggest that tax receipts have not gone up or are you just going to make cryptic references to conspiracy theories?

When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

-- Thomas Jefferson

Rob’s recently listened-to songs:

Just a thought, but I doubt this takes into account the 60 or so billion dollars earmarked for katrina.... I wonder what that would do to the numbers…

(Rob, just ignore woof.  He’ll go away...)

Rob you are assuming a one to one effect.

This is an economy that is being stimulated by gov’t spending, historically low interest rates, and tax cuts.

Question, What is the history of tax federal revenues?

I don’t feel like doing the research now.

Channeling Don M -

More money for the oligarchy and it’s slave masters to enslave the poor!

Considering that we’re running deficits in 2005 and we weren’t in 2000, what’s your point?  Bush isn’t doing quite as bad as he was in his first term?

The point of the post was to show that tax cuts work, despite what Demcorats say about them.  You’ll get no argument from me or many ohter people here if you want to criticize Bush’s big-spending ways.

When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

-- Thomas Jefferson

Rob’s recently listened-to songs:

[...] When tax rates are as high as they are right now now tax cuts have historically increased federal tax receipt, not decreased them. Bush’s tax cuts from his first term have had an extremely positive impact on both our economy and on the amount of money the government takes in (which, obviously, has a directly positive impact on the deficit Conrad is so busy moaning about). [...]

[...] why not end the tax cuts that Bush passed in the middle of a war? Those don’t seem to be helping the deficit.Umm....yes they are. Rob | Homepage | 10.28.05 - 10:52 am | # [...]

It’s an interesting notion to explore, but your conclusion isn’t supported by your facts. GDP growth would have happened anyhow, meaning tax receipts still would have gone up. To make the claims you’re making, you have to show that a) the tax cuts caused more GDP growth, b) that tax receipts from that extra growth make up for the cuts, and c) the increase in revenue is sustainable rather than a one-off. You have done none of these yet.

You also ignore the important question of which tax cuts increase revenue by how much. When you say "Tax cuts not only give a boost to our economy [...] but also provides our government with more money," this is obviously false at least some of the time. If we end all taxes, the government will obviously have no money, and we’ll harm GDP growth when the government stops doing the many things that help the economy (defense, roads, policing, education, etc).

If you aspire to more than partisan puffery, perhaps a little more homework is in order?