The GOP is trying to push their BS agenda of how “Cutting Taxes will increase federal revenues”. Obviously the fact that they are doing this is because they want to protect their rich donor friends who own them (like the Koch Brothers) and NOT because they actually care about America and the problems we face (btw its not only GOP, some corporate democrats do this as well). But from what I have seen, this policy does not hold true.
"But wait! We cut taxes under Reagan and Bush, and revenue INCREASED!". Yes, while technically that is true, theoretically, it DECREASED.Who cares if revenues increase if it does not meet you growing needs. America has both a spending problem AND a revenue problem". We spend to much, but we also dont have enough income (in laymans terms). Not going to address the spending side here today, that is another post. But for what we need as a country, we dont produce enough revenue.
Total Direct Revenue
Total Federal revenue as a share of GDP 1975-current
So why dont we produce enough revenue? Well, while right-wingers complain that the tax rates are too high, weve had MUCH higher rates in the past….and weve done fine.
But that is not even the main issue here. The amount of taxes we RECEIVE is the problem!
Looking at the chart above, we (in 2010) are at the LOWEST rate of income tax as a % of GDP since 1949! And as for the corporate income rate, the 1.3% rate in 2010 (corporate taxes as a % of GDP) is WELL below the average of 2.83% (since 1934). With RECORD profits and corporations sitting on $2 TRILLION of cash, I see no reason why they would need more Tax breaks.Also corporate taxes as a % of GDP is the lowest amongst Germany, Canada,France,United Kingdom and Japan. It is also 1.7% lower (nearly half) of the OECD average.
We need to cut all the tax loopholes that get some companies to 0% Tax rates. I am NOT in favor in cutting tax write-offs, I believe this actually is actually a good thing (Wont explain why now,thats another blog post).
REMEMBER, we have a REVENUE PROBLEM, along with a spending problem. I am NOT suggesting we go to 50% tax rate, like we had during Reagan in the 80s. What I am suggesting to do is to cut all loopholes that companies use to get out of paying taxes and cut the Bush Tax cuts (right now, for people making over 300K or so a year). That small measly 3.6% increase is nothing for millionares. In a time of need, my solutions will increase our revenue’s dramatically.
BTW, you cant use the argument that lower taxes = more jobs! They dont! Total US tax revenue as a % of GDP is at the LOWEST since the 50s. Yet, I see a 9.1%, unemployment rate! WTF! That makes ZERO sense.
IF YOU HAVE A RESPONSE, do not just say you are WRONG. Give me facts,stats,REASONS why I am wrong. I HATE HATE HATE HATE HATEEEEEEE people who say you are just wrong without providing a logical argument!!!!