Quote:
Originally Posted by RickFLM4
Changes in marginal tax rates have little effect on total income tax receipts (Hauser's Law) so I don't attribute all infrastructure needs to reductions in marginal tax rates. Rather, taxes that are supposed fund portions of infrastructure spending, such as gasoline taxes, have not kept pace with inflation. Additionally, spending on entitlement programs as a percentage of GDP has sharply increased, partly due to sharper than planned increases in costs like healthcare, and partly due to expansion of programs. Consequently, they are taking a larger and larger piece of the tax receipts.
The war on poverty also started in the mid 1960s and yet we don't seem to be winning. It's been 50 years of trying to tax one person to provide a benefit to another, including the preceding 8 years with a liberal president. So let's try something else, like trying to get companies to make investments and spend money in the U.S., increase GDP (which should mean more tax dollars coming in) combined with real reforms over entitlement programs, which are on an unsustainable path. If it doesn't work, we can always go back to tax and spend.
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I mean, those programs do work and have worked. What we need to not do is reward people for behavior/actions they haven't' taken yet.
You don't deserve a tax cut for what you MIGHT do. We also shouldn't reward you for exploiting loopholes.