Tuesday, January 18, 2005

Tax Cuts Just What The Doctor Ordered For An Ailing Economy

In my last post I talked about the pushes the government can do to help create an environment where the economy can thrive. Apparently, in spite of democratic opposition, tax cuts have once again encouraged just that kind of environment.

Lawrence Kudlow writes in the Washington Times:

A supply-side tax-reform movement, a shrinking budget deficit, new-found spending discipline, and a determination to confound conventional wisdom by reforming Social Security has George W. Bush's second term off to a roaring start — even before he is officially sworn in.

3 times now in American history have we cut taxes. The first was with John F. Kennedy. The second with Ronald Reagan. The third with George W. Bush. Each time the economy has benefited and so does the coffers in Washington.

Unknown to most, because the media seems unaware or partisan, the federal deficit is rapidly decreasing as tax revenues are pouring in. The tax cuts have increased general spending and more importantly increased investment bringing in even more profits which are then taxed at a higher rate.

Once again supply side economics has shown itself to be the champion.