Tornado Alley (PROG)

[SilverSurfer]

tinner, just hap to reply to you, not looking for a response but since you have such an interest in President Obama's insistence on tax cuts, including extending "The Bush Tax Cuts" and his last "Payroll Tax Cut" followed by his current tax cut proposals >>>>> he must have a reason for thinking leaving more money in the hands of citizens is a stimulus........

A Short History: Tax Cuts Work!
If we look at the U.S. economy, three historical examples are the Harding-Coolidge tax cuts of the 1920s, the Kennedy-Johnson tax cuts of the 1960s, and the Reagan cuts of the 1980s. The U.S. federal income tax, established with the enactment of the 16th amendment in 1913, began with a top marginal rate of 7 percent. This quickly escalated to 77 percent by 1918. During the Harding-Coolidge administrations the top marginal rate was reduced to 25 percent by 1925. Economic output nearly doubled over the following four years, and unemployment fell sharply.

During the Depression and World War II tax rates rose steadily, with the top marginal rate reaching 94 percent by the end of the War and remaining at 90 percent or more well into Kennedy's term. Kennedy pushed for tax cuts, which were enacted in 1964 after his assassination. The top marginal tax rate was reduced from 91 percent to 70 percent by 1965. What followed was a major expansion in the economy. Real gross domestic product rose in the four years after the tax cut by an average of 5.1 percent per year. Unemployment averaged 3.9 percent, compared to a 5.8 percent average in the four years prior to the tax cut.

The Reagan tax cuts of 1981 dropped the top marginal rate from 70 percent to 50 percent, with additional cuts in the tax on capital gains. The top marginal rate was further reduced to 28 percent by 1988. The result was again an increase in growth in the economy. Real GDP grew by .9 percent per year between 1978 and 1982, and grew by 4.8 percent per year from 1983 to 1986. The unemployment rate was 9.7 percent in 1982. It fell to 7.0 percent by 1986, and was 5.3 percent in January of 1989.

http://www.mrc.org/bmi/commentary/2006/Econ__How_do_Tax_Cuts_Work_.html

We all know Obama is wrong,,,, but why? He must listen to economists!

http://beforeitsnews.com/story/1106/515/Dont_Ask_An_Economist.html