A Secret the NYTimes can keep

[Yonivore]

This column by Larry Kudlow surprised me:

Did you know that just over the past 11 quarters, dating back to the June 2003 Bush tax cuts, America has increased the size of its entire economy by 20 percent? In less than three years, the U.S. economic pie has expanded by $2.2 trillion, an output add-on that is roughly the same size as the total Chinese economy, and much larger than the total economic size of nations like India, Mexico, Ireland and Belgium.

This is an extraordinary fact, although you may be reading it here first.

***

For those who bother to look, the economic power of lower-tax-rate incentives is once again working its magic. While most reporters obsess about a mild slowdown in housing, the big-bang story is a high-sizzle pick-up in private business investment, which is directly traceable to Bush's tax reform. It was private investment that was hardest hit in the early decade stock market plunge and the aftermath of the 9-11 terrorist bombings. So team Bush's wise men correctly targeted investment in order to slash the after-tax cost of capital and rejuvenate investment incentives.

The jobs and incomes pictures are very bright, too, as you would expect with that kind of economic growth. Read it all.

Of course, Today's New York Times suggests that the secret remains safe with Kudlow: "Jobs data indicates economy is slowing."

[exstatic]

It's a debt financed house of cards.

[boutons_]

"Despite almost five years of economic growth, individual tax receipts have yet to reach the levels of 2000. Even with surging payments for investment profits and business income, individual tax payments in 2005 were only $972 billion — below the $1 trillion reached in 2000, even without adjusting for inflation.

Over all, individual and corporate taxes have lagged well behind the economy's growth over the past five years. Government spending, by contrast, mushroomed far faster than the economy.

And federal debt has ballooned to $8.3 trillion, up from $5.6 trillion when Mr. Bush took office. Republicans are trying to raise the authorized debt ceiling to $9.6 trillion."

http://www.nytimes.com/2006/07/09/wa...rtner=homepage

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Rising tax revenues will be:

1) attributed exclusively to the Repug tax cuts for the rich + corps, magically independent of general economic cycle.

2) used to justify more, deeper, permanent tax cuts for the rich + corps.

The Repug trap to "starve the beast" is set: in the next economic downturn when tax receipts decline, inflation goes up, and the US Govt goes many more $Ts into debt, the Repug will agitate to reduce non-military government spending and government programs for the needy, research, children, poor (monstrous military suppliers are BIG Repug contributors).

[RandomGuy]

Of course it is the tax cuts that did it. It couldn't have *possibly* been the record low interest rates...

[Ya Vez]

it's about the economy stupid..... famous democratic mantra...

[exstatic]

it's about the economy stupid..... famous democratic mantra...

The economy has been flat for 6 years. Ask anyone with a 401k.

[Yonivore]

The economy has been flat for 6 years. Ask anyone with a 401k.

My 401K's done fine. Why don't you show some evidence of your assertion, instead of just talking out your ass?

[Aggie Hoopsfan]

The economy has been flat for 6 years. Ask anyone with a 401k.

I netted a little over 13% last year, sitting at just over 6% so far this year even with the correction that hit in May and June.

[scott]

The economy has been flat for 6 years. Ask anyone with a 401k.

Mine has quintupled since 2003... what was the question?

[Yonivore]

Methinks someone either a) doesn't have a 401K or, b) manages their money like a Democrat (i.e. let's other people make decisions about their money).

Which is it?

[scott]

You aren't talking to me, are you?

[Yonivore]

You aren't talking to me, are you?

No, the guy that said to ask us that have them. From you, I want tips.

[Spurminator]

I don't know jack about managing my 401K, but I've gotten a 10% return since 2004 just letting it sit.

[Yonivore]

I don't know jack about managing my 401K, but I've gotten a 10% return since 2004 just letting it sit.

And, if you knew Jack, you'd of gotten between 100 and 200% return in that time.

[Ya Vez]

my 401k gets a instant 100% match from company up to six percent... so I am making twice what I am already putting into it right off the bat....

[Yonivore]

Just think if you could slap that confiscatory Social Security tax into a private account.

Say, exstatic, what's your Social Security contribution earning these days?

[George Gervin's Afro]

Just think if you could slap that confiscatory Social Security tax into a private account.

Say, exstatic, what's your Social Security contribution earning these days?

I would presume the same as yours.

[Yonivore]

I would presume the same as yours.

Exactly.