Four Year Anniversary Of The GOP Tax CutsThis month marks the fourth anniversary of the 2003 Republican tax cuts. Because of this act of Congress, millions of Americans received relief from the death tax, the marriage penalty, taxes on capital gains and dividends , as well as greater deductions under child tax credit. In fact, one year aft...
Now, it may seem counterintuitive to think that tax revenue increases when tax rates decrease. But, it's true. Why? Tax cuts stimulate the economy. They change behavior. When you have more money, what do you do with it? You invest it. You spend it. You create jobs, you do all kinds of good things. That's why after the tax relief was enacted, the economy went from flat lining to consistent growth. In fact, since the tax relief became law, 7.8 million new jobs have been created. The unemployment rate has dropped to 4.4 percent (from 6 percent). The stock market has increased by 40 percent – reversing a three-year decline.
The Democrats, however, believe that this 46 percent increase in revenue for the federal government wasn't enough, and that whatever you got, it was too much. They want to take more of what you earn and send it right to Washington. So, when you hear the Democrat's argue that the tax relief has caused the deficit, take their comments with a grain of salt. The numbers show that the tax cuts increased revenue and they encouraged growth in the economy.
The real problem is Congress' uncanny ability to spend like a drunken sailor. We need to fix our spending problems, not increase your tax burden.