Skip to main content

View Diary: Boehner: 'Job creators in America are essentially on strike' (183 comments)

Comment Preferences

  •  No they don't (4+ / 0-)
    Recommended by:
    Philpm, burlydee, msdrown, wsexson

    1920's? Get real.
    The Kennedy Tax Cuts closed lots and lots of loopholes. Effective tax rates (amount "job creators" paid) went UP.

    The economic expansion of the Reagan years can be explained by sane (non-Republican) economists by pointing out that the Federal Reserve rate went from 16.4% to 6.7%. Most people think that a 10% reduction in interest rates explains a lot of growth.

    1980    13.35
    1981    16.39
    1982    12.24
    1983    9.09
    1984    10.23
    1985    8.1
    1986    6.8
    1987    6.66


    In theory, there is no difference between theory and practice; but in practice, there always is a difference. - Yogi Berra

    by blue aardvark on Thu Sep 15, 2011 at 12:14:20 PM PDT

    [ Parent ]

    •  You proved my point that (1+ / 0-)
      Recommended by:

      correlation does not equal causation.  Conservatives say tax cuts caused growth.  (They say the Bush tax cuts caused the growth from 2001 to 2004).  Liberal/progressive economists point to other factors as causing each of those periods of economic growth.  Neither is "provable" scientifically because you can't do experiments that control for all those variables.  What you have is economic theory.  And about half the country has a theory that comes from one direction, and about half the country has a theory that comes from another direction.

      By the way, what's your source for the notion that the Kennedy Tax Cuts "closed lots of loopholes so effective tax rates went up"?  That's not what I understood those Tax Cuts to do.  

      Are you confusing that with the Tax Reform Act of 1986, which DID close a lot of loopholes?  Even so, effective federal individual income tax rates were lower in 1989 then they were in 1979.  (CBO numbers are summarized on the second chart here.)

      •  The Problem (1+ / 0-)
        Recommended by:
        blue aardvark

        People cannot evaluate conservative claims rationally and critically.  Conservatives rarely claim, in writing, that tax cuts "cause" economic growth.  Even the Heritage "analysis" you linked to doesn't claim that.  They use phrases like "associated with" and "at least in part".  And they don't back it up.  They just say "taxes were cut in year x and the economy grew".  For example the economic growth in 2001-2004 following the Bush tax cuts was EXACTLY the same as the economic growth in the years prior.  It's a straight line with nearly constant slope.  No causation there, but people can't understand that.

    •  Don't forget a couple $ T in defense spending, pur (0+ / 0-)

      e socialist job creation speding that.  Buying lots a toys that will be played with a few years, then left to rust.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site