Congress must act by the October debt deadline or else risk an economy-rattling, first-ever default on U.S. obligations.
Yeah, I’m sure not worried. Top men, top men are on it.
Slipping tax revenues??! Only one way to solve that. More tax cuts!
What is the cause of the slipping tax revenues?
One element would be the GOP promises that tax cuts are coming. Asset owners have some control over when to take taxable gains on investments.
I still remember a conservative newspaper editorial crowing about how Reagan was right about tax cuts increasing tax revenues, because the year that a big cut in capital-gains tax took effect there was a huge increase in reported capital gains over the prior year. The real story was that, for much of the prior year, investors were taking all the losses they could and hanging on to their gains until the lower rates applied.
Corporations might also be slowing repatriation of profits taken overseas for a similar reason – the GOP has talked about [yet another] tax holiday to allow corporations to bring back profits they have been taking overseas to evade higher taxes in the US.
I’ll take Republicans for $500 Alex.
Alex: “@greysea. are you sure you don’t want to take them for more?”
The Republicans will surely find time in their busy day to attend to this minor matter, and there will be no brinksmanship or grandstanding about how awful the deficit is. Please see my filmed reaction below:
A little song, a little dance, a little seltzer down your pants…
But the projected $686 billion increase would dwarf the improvements to the government’s deficit picture that would result from either the House or Senate health care legislation, which blends benefit cuts and tax cuts to reduce deficits by up to $321 billion over the coming decade.
Tax cuts never lead to increased tax revenue, not under Reagan, not under Shrub, not under Obama. Never, They may help increase economic growth over the short term when government spending is not reduced to fund the tax reduction but tax revenues after tax cuts have never been shown to eclipse previous revenues before the tax cuts were applied.
It has entered into the lazy reporters lexicon, in this case Andrew Taylor, that tax cuts reduce deficits. One more instance of how R talking points repeated ad infinitum have influenced reporter’s ability to distinguish between economic reality and R fantasy land where the lower the tax rate the higher the tax revenues.