This will come a shock to many of you. In fact, I feel extremely guilty about what I am about to reveal, knowing it will probably cause many of you to lose sleep or perhaps consider withdrawing from the world for a few days as you contemplate the gargantuan shift in perception the following revelation will cause.
Larry Kudlow is a liar. Yes, he is, I'm sorry to say. A big, fat, hairy liar. Liar, liar, pants on fire type of liar. Scarier still is many right-wing pundits and voters admire him, so his lies actually have weight in the public discourse. Therefore, it is my duty to call bullshit when I see it and let you know what a liar he is.
He recently wrote a column called
Lower Taxes, Higher Revenue, where he argued that increasing recent government receipts was proof positive that low-tax rates lead to higher revenue and growth. Now, I will give him the benefit of the doubt here. Actual receipts from personal income tax expenditures did increase by 16% from the 3rd quarter of 2003 to the 1st quarter of 2005. What Larry
doesn't tell you is the 824 billion in government receipts in the 1st quarter of 2005 is roughly
the same amount of receipts the government had in 1998 - when rates were higher. More importantly,
the budget was balanced in 1998, under that philandering immoral Clinton. And tax receipts increased an additional 12.2% from the 1st quarter of 1998 to the 4th quarter of 1999.
So, Larry, those higher rates under Clinton - when we balanced the budget - also increased tax receipts.
If rates were higher under that degenerate Clinton, GDP should have gone through the floor. There would be no growth at all in the economy. Yeah - the growth rate was a terrible 4.5, 2.7, 4.7 and 6.2% in the 1st - 4th quarter of 1998, respectively. Those higher rates - that led to a balanced budget - really crushed the economy in 1998. How did we live through it and live? In addition under Clinton's higher tax rates, the economy grew for another year and a half until the 3rd quarter of 1999. I wonder if Larry was bullish on the market then?
Larry also argues low tax rates are the sole reason for economic growth under his master. What Larry fails to remember is at the same time that Bush gave the rich a massive tax break, the Federal Reserve lowered interest rates to abnormally low levels. The Federal Reserve cut the discount rate from 5.5% to 1.25% during 2001. Essentially, banks were giving away money. And consumers have borrowed handsomely purchasing homes at a record rate. Residential construction spending increased 30% from 2001-2004. Total outstanding mortgage debt outstanding nearly doubled. In other words Larry, cheap money is equally responsible for the recent GDP expansion.
Let's conclude. Under Clinton's higher tax rates - where the rich paid their fair share -- tax receipts increased the US balanced its budget and grew the economy.
Under Bush, there is no balanced budget, consumers are in debt to maintain their standard of living, and the rich are parking more money overseas.
Fuck you, Larry.