Myths About Taxes Again


 
 

The Left continues to mislead at best and some may actually be lying. The latest bogus rant is that our tax rates are the lowest in 60 years.

 
 

Investors Business Daily ( IBD ) analyzed IRS data to address this rant. Results:

 
 

Average tax revenues as % of GDP since 1945: 17.8%

 
 

Tax revenues as % of GDP in 2007: 18.5%

 
 

Tax revenues as % of GDP in 2009 and 2010: 14.9%

 
 

Why the drop?

Individual and corporate tax receipts decreased by 21% and 63% respectively. The top 5% individual income earners + corporations contributed 41% less as tax receipts. These were symptoms of the 2008-09 Great Recession with government interference in the housing market the root cause (details in https://economics501.wordpress.com/2010/12/).

 
 

Why the increase in 2007 which in dollar terms was a 30% increase from 2003?

Very simple – the economy always responds to long term pro private economy incentives such as the tax and capital gains tax cuts of 2001 and 2003. Details:

https://economics501.wordpress.com/2011/05/31/myths-about-taxes-that-the-left-advances/

 
 

 
 

The Left continues to ask for higher taxes and continues to lambast private corporations. How many on the Left have actually generated a single dollar to our economy. Maybe some cannot (ex: lack technical or business skills) or do not want to. Would any private corporation hire Paul Krugman besides the NY Times, which daily decreases its relevance? And Krugman teaches out of date Keynesian economics at Princeton.

 
 

If anyone on the Left would really care about increasing economic growth and examine economic and tax revenue data readily available from the Dept. of Treasury / IRS, they would advocate pro business policies. However, many on the Left may have an agenda which may include:

 
 

The destruction of Capitalism

 
 

How else can one conclude otherwise after examining the Left’s accomplishments since January 2009:

 
 

1 – $850 billion stimulus which did not create any long term shovel ready jobs. Essentially it choked private investment and substantially increased our long term deficit.

 
 

2 – ObamaCare – Bureaucrats to control the health care, with intent to gradually destroy private insurance companies

 
 

3 – Frank – Dodd Finance Bill – with right of the Treasury Dept to seize companies they deem a threat to broad economy.

 
 

4 – Energy Policy: with page from Saul Alinsky’s ‘Rules for Radicals’ to never let a crisis go to waste, Obama thwarts (illegally) reinstating normal oil drilling post BP crisis. Yes illegal and a constitutional crisis, not following US District Judge Martin Feldman’s ruling striking down Interior Secretary Ken Salazar’s moratorium.

 
 

So what must free market capitalists do?

 
 

1 – blog to sites dominated by the Left but with fair number of conservatives who will respond and further drive our points. Blog to NY Times, Washington Post, LA Times

 
 

2 – write to Leftist Congress reps. Let them know we listen to their myths and will challenge them

 
 

3 – encourage our weak moderate and conservative representatives to challenge all economic myths

 
 

4 – Be part of a grass roots movement to educate many who are not well informed. Is politics not appropriate at social gatherings? MOST APPROPRIATE in 2011. This is especially true if your friend or neighbor makes a comment supporting any of the Left economic myths. I never restrain and have challenged many friends, neighbors, even relatives – with some success!

 
 

Great research by IBD:

http://www.investors.com/NewsAndAnalysis/Article/574396/201106031840/The-Presidents-Low-Tax-Lie.aspx

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About economics501

1 - free market Capitalist; 2 - Fitness Entrepreneur; 56 years old, VP at an Investment Bank in NYC, ex Venture Capitalist, happily married with 2 girls. Education: Rutgers and NYU. I allow Ted Hruzd, my friend to blog at will here. He has many posts here. I have known Ted since we were both students at NYU. Ted also works for an Investment Bank as a VP in Equity Global Markets. ------------------------- I was very very Socialist leaning as a 22 year old. I then strongly believed in Gov role in helping the poor. However, as a USDA Child Nutrition Programs, I personally accounted for millions of fraud, abuse, and waste of tax payer money. I came to believe that the poor would be best served with less Gov programs and more with direct aid via tax system. Then after 5 years I became a free market capitalist, was a venture capitalist in 2007 and helped start 2 high tech companies. I dedicate this site to champion free market capitalism as the best road to Prosperity. Please join in. If you disagree, fine, but please post with dignity and class and be civil. Argue with facts always.
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