U.S. Farm Report Mailbag
By: U.S. Farm Report
, US Farm Report
Comments, questions, opinions...this is your chance to speak out regarding anything and everything reported on U.S. Farm Report. Viewer feedback updated regularly.
The Tax Cut Debate...Continued...
May 25, 2010
***Do tax cuts pay for themselves? John's comments on the May 22-23, 2010 edition of the program generated debate amongst viewers. Below is a transcript of John's comments, followed by viewer response...
Time now for our weekly look inside the Farm Report Mailbag. We received this comment from "Old Bob"..."You made a statement this morning to the effect that reduction on taxes does not result in increased (federal) revenue. If I am hearing you correctly, then I must disagree."
Bob, I will post on our home page sources to back up my statement, most of them from experts on the right. I was convinced by the nonpartisan Congressional Budget Office whose analysis suggests the best a tax cut can do is recover about 50 cents of every dollars over a very long period. Also, Greg Mankiw, a leader of the Bush administration economic team and author of the top-selling economics textbook which states on page 29 that an economist who suggest tax cuts pay for themselves is a "snake oil salesman trying to sell a miracle cure."
We desperately want to believe we can raise government revenues by cutting taxes as it would allow us to painlessly resolve our grim budget deficit. Tax cuts are powerful tools for stimulating a slowing economy. But they must be paid for with spending cuts or debt. Too often we have chosen debt. I don't think we have that option now.
As always socialist can find statistics to confirm their answers - this is just like the global warming crowd bending the numbers to agree with their finding - why not bring on a conservative to offset your one-sided views.
You are 100% correct on your opinion about tax cuts. While on the surface they can help the economy, it is still a losing proposition for your reasons given. I see a tax "increase" after our November elections here in Illinois. While no one wants a tax increase, I think it is needed. However, it should be mandated with very selective spending (good luck on that one) by our mostly inept politicians. I still say most of our dollar drain comes from the Windy City. We need a 51st state named Chicago, and let them "implode" without pulling downstate Illinois with 'em.
We love your program. Keep up the great work!
You are the one of the few honest commentators on TV. It is too bad that you are on at 6 AM instead of 7 PM when some of the wingnuts come on and continue to indoctrinate the populous with false assertions. I'm a conservative democrat or an independent. I have been concerned about the federal deficit since I was in grade school in the 50's.
I thought Jimmy Carter was the best man elected President ever. I still think so. But when he ran a $50B deficit I voted for Reagan who promised to balance the budget in 3 years. It was the biggest lie in history. The laffer curve was a laugher. I've been a Republican basher ever since.
Many of your comments tell me you lean Republican but you are honest and tell it like it is. I believe I've also heard you saying it's time to rethink our farm subsidies. The public had been bamboozled by Reaganomics for decades. Walter Mondale and George Bush Senior lost because they were honest about raising taxes.
The Republican mantra says if you give the Democrats more money, they will just spend it. The truth is neither party is bashful about spending and the income and expense are not hooked together. The spending is there ALL THE TIME. John Phipps for President!!