I agree, but tax revenues actually went up when dividends wee cut because,
as the economy improved, more people were paying taxes in a higher bracket.
Taxes are like firing an artillery piece.
An artillery piece will reach its maximum range when fired at a 45 degree
angle. Anything more or less will result in shorter distances. Taxes are the
same way. If tax rates are too high, the economy slows and fewer people are
working or are not making as much money and tax revenues fall. If tax rates
are too low, revenue falls even though more people are working and are more
prosperous. The problem here is that no one knows for sure what the optimal
amount of taxes is.
History tells us that tax rates have been too high since the high-tax Great
Society years because tax revenues have risen with each cut and have risen
more than the population has increased. Raising taxes does not automatically
mean more revenue. It means fewer jobs and more tax avoidance.
I like a flat tax rate. Let everyone making more than $25k (to be adjusted
for inflation over time) pay a flat tax of 15% and eliminate most
deductions. Those making more will still pay more.
----- Original Message -----
From: "droo" <03dakotacc4.7_4x4@comcast.net>
To: <dakota-truck@dakota-truck.net>
Sent: Sunday, February 10, 2008 10:13 AM
Subject: Re: DML: Made in China
>
> On Sun, 10 Feb 2008 09:16:03 -0500, Tom Byrne <kerib@ptd.net> wrote:
>
>>
>> I agree with him that there should have been spending cuts. I do not
>> agree that the tax cuts were just for the rich. Unless you believe as
>> some leftists do that everyone making $70k or more is rich. I believe he
>> did not vote for the cuts for both reasons. One which I agree and one I
>> do not.
>>
>
> I think at the time of the tax cut on dividends I was making somewhere
> around 38k a year and that put me in the 25% tax bracket because I am
> single. So those cuts did benefit me benefited me because I own dividend
> paying stocks. Maybe if people were more wise about their spending and
> invested their money in stocks instead of credit card debt, they would
> benefit from the tax cut. I was, however, against them because of the
> increase in spending that took place to pay for the wars. I'm all for tax
> cuts, but cutting your income while increaseing your spending is not
> fiscally responsible.
>
>
>
> --
> -droo
>
> 2003 Dodge Dakota Club Cab
> V8 4X4 Manual Transmission
> Bridgestone Dueler A/T Revo's
> Can-Back Soft Topper
> Rhinoliner
> Alpine CD Head Unit w/ XM
> Alpine 6 3/4" Speakers
> Sony 8" Subwoofer
> Q-Logic Custom Fit Enclosure
>
>
>
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