12 of 39

Yes

Write now Article Tools

Page 2 of 4

the budget."

Though the tax cuts resulted in sufficient increase in taxation occurrences to increase revenue, it was not sufficient to both pay for increased military spending and balance the budget. Reagonomics was the entire package, and, if not voodoo, success would require some sort of magic. He sacrificed the balanced budget for record deficits, and settled for two-out-of-three.

LIMITED TO STRATEGIC, PRODUCTIVE EXPENSES

Nothing creates incentive more than reward, and, likewise, nothing kills incentive more than deprivation of reward. This is true when children do chores, and it is true when rich people and businesses develop tax strategies to increase net profit. The key, then, is to target strategic, productive expenses with tax incentives that result in both lower taxes for rich people and businesses, and increased tax revenue and/or decreased reliance upon government programs.

If tax rates remained graduated with the rates on the top incomes sufficient to pay for social programs, combined with additional limited tax credits on employment expenses paid to American workers, some jobs would be created. Though the job was artificially induced, the recipient of the job is truly employed, and would create true demand.

Supply will rise to meet demand, and the supply for that true demand will be met by other truly employed people. The taxes paid on the income and spending of these truly employed people will offset the revenue collected and benefits paid by the government, PROVIDED there are sufficient increases in the number of taxable transactions.

HEY MAYNARD, IS THERE A LIMIT?

One of the most brilliant - and misunderstood - philosophers of the twentieth century was John Maynard Keynes (rhymes with 'rains'). He was an economist, for certain, but he stands alone as the greatest economic philosopher to those who understand what he told us. Only those who learned what Keynes really said will agree with me. That statement will, however, draw argument from those who do not understand Keynes' true lesson for us. Regardless, supply-side taxation theory is the brainchild of Keynes.

Many today regard Herbert Hoover as just another Republican in the line. Herbert Hoover was a genius. The dam is rightfully named for him. He was a gifted engineer. However, he did not apply his engineering genius to economics. Even as wise a man as Hoover was, he thought the principles of engineering were not applicable to principles of economy. He did nothing for the economy believing the

• << previous page
• 1
• 2
• 3
• 4
• next page >>

Add your voice

Know something about Supply-side economics: Do lower taxes increase a country's economic health??
We want to hear your view. Write now!