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URL:  http://boards.fool.com/oldone-quotsecondly-i-do-not-believe-that-we-24421113.aspx

Subject:  Re: Don't worry about boomers killing the market Date:  8/2/2006  11:50 PM
Author:  JAFO31 Number:  52917 of 75335

OldOne: "Secondly, I do not believe that we have had "unwarranted, idealogically driven tax cuts". The only people who believe this are those who use "static scoring" when analyzing tax cuts. "Dynamic scoring" is much more accurate and shows what we have seen in reality -- tax cuts lead to greater economic activity, which more than offsets the tax cut, leading to higher tax revenue."

Data please, showing that tax cuts lead to high real revenues?

From my records, regarding FIT revenue:
	Year----gross--CPI-U-----------real revenue---- delta
---------------revenue
1980 249,077 82.4 0.824 $302,278
1981 282,298 90.9 0.909 $310,559 2.7395%
1982 276,076 96.5 0.965 $286,089 -7.8793%
1983 271,645 99.6 0.996 $272,736 -4.6675%
1984 297,376 103.9 1.039 $286,214 4.9417%
1985 321,916 107.6 1.076 $299,178 4.5298%
1986 366,979 109.6 1.096 $334,835 11.9181%
1987 369,046 113.6 1.136 $324,864 -2.9777%
1988 412,761 118.3 1.183 $348,910 7.4018%
1989 432,838 124 1.24 $349,063 0.0437%
1990 447,061 130.7 1.307 $342,051 -2.0087%
1991 448,349 136.2 1.362 $329,184 -3.7617%
1992 476,163 140.3 1.403 $339,389 3.1001%
1993 502,720 144.5 1.445 $347,903 2.5086%
1994 534,754 148.2 1.482 $360,833 3.7164%
1995 588,331 152.4 1.524 $386,044 6.9870%
1996 658,124 156.9 1.569 $419,454 8.6546%
1997 727,303 160.5 1.605 $453,148 8.0328%
1998 788,452 163 1.63 $483,713 6.7449%
1999 877,292 166.6 1.666 $526,586 8.8633%
2000 980,521 172.2 1.722 $569,408 8.1321%
2001 887,882 177.1 1.771 $501,345 -11.9533%
2002 796,862 179.9 1.799 $442,947 -11.6482%




Tax Info from http://www.taxfoundation.org/prtopincometable.html#TotalIncomeTaxShare


http://www.taxfoundation.org/prtopincometable.html

CPI Info from http://data.bls.gov/servlet/SurveyOutputServlet

I realize that I need to update for 2003 data, and for 2004 once such data becomes available.

Contrary to popular mythology, the Reagan tax cuts did not significantly increase real federal income tax revenue.



"What if the surplus at the end of the Clinton administration had been invested..." My feeling is that the surplus was not "squandered", it was soaked up by the war on terror, which we did not start, but must pursue unless we wish to live under islamic domination. Even if I could get $250 k per year in SS, I would not want my children to live in a muslim country. The tax cuts have actually increased government revenue and have been a net positive.

I will probably regret responding to this paragraph, but are you really intending to argue that GWB's war on terror is the most cost effective method for avoiding the islamic domination you fear? If not, then it is reasonable to target about squandered funds resulting from sub-optimatl choices.

Regards, JAFO



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