Quote:
Originally Posted by Sheriff Gonna Getcha
Some of his tax cuts, however, actually increased tax revenue. Reducing the capital gains tax, for example, actually increased capital gains tax revenue. Moreover, capital gains tax cuts were not aimed squarely at the upper echelons of society. More than 50% of the American households report capital gains/losses. Moreover, the notion that we should increase taxes on people who have gained money by pumping money into the economy sounds somewhat counterproductive to me, especially in light of the fallout of the subprime market and its aftershocks (e.g., limited credit availability for M&A and capital expenditures).
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I don't claim to understand the in's and out's of tax policy, but the 'tax revenue increases with decreased rates of taxation' is apparently a questionable assertion.
FactCheck.org: The Budget According to McCain: Part II
But if we want to cut taxes then we have to cut spending (which is what McCain said way back in 2001/2003) because the effects of the current administration's policies have been to enlarge the deficit enormously. It is the 'no sacrifice required' ethos that infuses so much of contemporary American culture. And with McCain's current rhethoric that means cutting domestic spending, which has consequences. So then you have to ask who is being asked to sacrifice and who gains most from that sacrifice.