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August 11, 2006

Comments

robkay

While the post-tax-cut deficit has increased, so have the post-tax-cut tax revenues. Our biggest problem regarding the deficit remains on the spending side. Bridges in Alaska to serve a handful of people; paying able-bodied citizens who do not add value to the economy; overpaying government workers who produce nothing, provide little service, and are not held accountable in their jobs; feel-good programs that enrich only the bureaucrats and their favored few; rampant waste and fraud. Take care of those and other spending issues and we could slash taxes even more, free up capital that would contribute to growth, and still be able to afford to address threats to our safety and security.

Mike Sacauskis

Thought your article was excellent. My first thought after reading the paragraph on Johnson, the Vietnam war and Tax cuts was that it sounded a lot like the current administration. Glad you mentioned that. Inflation has always been the after effect of a war. I beleive the same fates that caused rampant inflation in the 70's and early 80's are now conspiring again. The Bush administration does seem to be following the Johnson blueprint whether intentional or unintentional, with the added issue of rising fuel costs.

One way to lower the national debt is to inflate the economy. Inflation is creeping up. If you look over the past 4 years the inflation rate is on an upward trend. While the administration claims the deficits are improving, the cost of the war is not included in the deficit estimates. I don't think we can honestly say what the deficits are because the costs of the war are open ended. The war is not being funded by the general fund, it's being funded with supplementary bills that are not being countered by decreases in spending or additional taxes.

Also, can increased revenues really be attributed to tax cuts? While the U.S economy may be more complex, I would suggest that you try cutting your income and increasing your spending. it's a reciepe for disaster. The only way this strategy works is if inflation is rampant, you're paying for what you bought today with inflated dollars. I don't see how the Fed by raising interest rates is going head off the disaster that this administration is creating. With fuel costs rising as they have, inflation seems to be ready to permeate the economy because it will cost more to transport goods, which will lead to increased prices of goods.

I would also suggest that what's fueled the increase in revenues is the increase in governement spending. As you noted it wasn't until we began to mobilize for WWII did the economy really come out of the great deperession. Haliburton alone has been given corporate welfare in astronomical sums in no-bid contract deals.

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