Donald Luskin is a member of the RWNM. He fancies himself an economist, but in reality he is nothing more than a shrill voice who hopes that people will not fact check a single thing he says. Because when they do, they learn the man is a pure 100% liar.
Mr. Rubin [Robert Rubin, in an op-ed last week] erred when he claimed that supply-side theory failed to predict the effects of tax policy in the 1990s. Supply-side theory predicts that tax hikes will not result in commensurate gains in tax revenues. The Clinton tax hike of 1993 sharply increased rates on personal incomes. As supply-side theory would predict, compared with revenues expected by the Congressional Budget Office in 1992 before the hikes were enacted, actual tax receipts were lower in 1993 and 1994, the same in 1995, and only 3% higher in 1996.
Notice how Luskin doesn't print any numbers with this statement? How incredibly interesting that omission is. He also compares the revenue to CBO estimates instead of using the actual numbers that are historically documented by the CBO here. So - let's look at the actual numbers from the record, Donny.
Tax receipts for the years 1993-1996 were (in billions) 509, 543, 590 and 656 respectively. That indicates that a tax increase raises revenue. That's a 28% increase, you moron. In addition, Clinton's history of tax revenue from individual taxpayers shows continued increases from 476 billion to 1 trillion in 2000. Also remember how the tax increases did not prevent the longest peacetime expansion in American history. There goes that argument, you parroting idiot. Oh yeah - that evil philandering Clinton balanced his last three budgets. How incredibly irresponsible that was. I thought only Republicans acted fiscally responsible (when was the last time they balanced a budget, Donny?).
I have an idea - let's put your theory to the test by looking at Reagan and Bush - both members of the supply-side kool aid drinking club. In 1982-1984, tax receipts from individual taxpayers were (in billions) 297, 298 and 288, respectively. It wasn't until Regan enacted a serious of tax increases that government revenues started to increase. Of course, by then Ronnie's spending was out of control. His discretionary spending increased from 326 billion to 488 billion - a 49% increase.
Bush's record is just as pathetic. He started with 994 billion in individual receipts in 2001 and now has 927 billion - a 6.7% decrease in revenue. Even if you go back to 1996 to compare individual revenue growth, Bush's increase in only 41% So, Donny - when the hell will those tax cuts pay for themselves?
Also note the Clinton's discretionary spending increased from 533 to 614 -- a 15% increase compared with the fiscally responsible Bush's whose discretionary spending increased from 649 to 967 - a 48% increase.
Now, I'm sure after reading this you will do exactly what other Republican hacks do - change the topic. "I was taken out of context", or "I didn't mean that" are bound to follow.
No matter how you slice it, your actual numbers don't add up, Donny. Now, go cry on Kudlow's shoulder while he tells you the next lie to spread.