The WaPo - Still Wrong on Taxes
By Pat Cleary Posted in Archived — Comments (1) / Email this page » / Leave a comment »
There's an old gag about the economist who, when presented with plain truth says, "Sure it works in reality, but would it work in theory?"
The WaPo does a bit of that in their editorial today, still desperately fighting any notion of tax cuts. It's almost quaint how steadfast they are in their "higher taxes, bigger government" philosophy these days. God love 'em, they're probably using rotary phones, too. But unfortunately for the Post, the truth is otherwise.
They make some arguments for not continuing the tax cuts citing the work of, among others, former Council of Economic Advisers Chair Greg Mankiw. But Mankiw is up earlier than we were this morning and has already dissembled their arguments on his blog insofar as his research his concerned.
The plain truth is that the President is right when he says, "The tax cuts worked." Tax cuts lead to more investment and more investment leads to growth. It always has, always will. The proof? Tax receipts are at an all-time high, fueled by the Bush tax cuts. That's a fact that's awful hard for the WaPo to rebut, and indeed they don't even mention it in today's editorial. An inconvenient truth, if you will.
As the President said, the "Tax cuts have fueled robust economic growth and record revenues." Unfortunately for the Post, that's a fact that no amount of theory can erase.
includes something like, "Yeah, but if we had kept the old tax rates with that same growth, our receipts would have be $X higher." Completely ignoring the fact the we wouldn't have HAD the same growth without the tax cuts.
Socialism doesn't work. It looks nice on paper, but it's been tried and it's failed miserably every time (usually accompanied by widespread death and suffering).
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