Baseball Crank
Covering the Front and Back Pages of the Newspaper
February 8, 2007
POLITICS: The Money Keeps Rolling In

Increased federal revenues keep on closing the budget gap ever since the 2003 Bush tax cuts (unlike the 2001 cuts, which were back-loaded) took full effect. Funny how that keeps happening.

Posted by Baseball Crank at 8:19 PM | Politics 2007 | Comments (6) | TrackBack (0)
Comments

Proven historical fact. It works EVERY time. I don't remember the exact economic reason, but it has to do with the number of times the money turns over in the private sector as opposed to money that goes to the government. The is a very large difference. If I remember right it is the area of 7 times more.

Posted by: maddirishman at February 9, 2007 9:38 AM

Now if Bush could only control his itching spending finger, the books might balance.

Under what circumstance is it that any politician wants to raise taxes? I get the impression that many conservatives have this warped sense of reality that liberals love taxes. We don't. Taxes suck eggs for everyone. It is true that by lowering taxes the economy has more fuel to keep growing. And, eventually, tax receipts will equal what they once were. A short term deficit is no problem here; it gets paid down while everyone enjoys lower rates of taxation. The catch is to lower spending as you go. This is the bit of fiscal policy that requires discipline. Instead of small deficits for the past 5 years, we've had huge ones.
How are the interest payments on all those treasury notes coming along? Around 200 billion bucks a year. On the same order as the current projected deficit. I suspect we can continue to perform some finicial chicanery to keep that from exploding, but the bill must be paid.

Can economic growth keep pace with the growth of entitlements and interest on the debt? I hope so.

Let's all check in at the bottom end of the next business cycle.

Posted by: Zufall at February 9, 2007 5:40 PM

Conservatives get that idea from the fact that the Democrats are nearly incapable of making a domestic policy proposal that does not include a call to raise taxes. Certainly (1) Democrats are constantly calling for new spending and (2) they always propose to pay for this with additional taxes.

Posted by: The Crank at February 9, 2007 5:46 PM

"Proven historical fact. It works EVERY time."

If cutting taxes is an economic perpetual motion machine, we really ought to just cut them to zero, increase revenues to infinity, and live happily ever after.

Posted by: Jerry at February 10, 2007 12:23 AM

Jerry, that works for me. Which entitlement program are we going to cut first?

Posted by: maddirishman at February 11, 2007 9:26 AM

Well, to do that, we'd have to cut them all. Not to mention eliminating the defense budget. But I'm sure all the economic prosperity would justify it.

Posted by: Jerry at February 11, 2007 11:12 PM
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