The Democrats have submitted their budget proposal and, surprise surprise, it includes the largest tax increase in American history and reaches well into the middle class of America – so much for “we’re just gonna raise taxes on the wealthiest 1%”. This tax hike is larger than Clinton’s tax increase of the early 90s. Anyone wanting to rethink their 2006 vote? Before you answer that, consider some statistics below. I’ve used stats like this in the past to show that the economy prospers and government revenues increase with lower taxes. When taxes go up, the economy goes down. How many statistics does it take for Democracts and their socialist supporters to get that? Consider:
Since the adoption of the 2001 and 2003 Bush tax cuts –
Job Growth. A total of 7.6 million new jobs have been created – an average of
168,500 per month. In the prior 27 months, the economy lost 2.7 million jobs –
an average of 100,000 jobs lost per month (evidence that Clinton indeed handed Bush a stagnant economy).
Unemployment Declines. The unemployment rate has fallen from 6.1 percent to
Economic Growth. In the past 15 quarters (nearly 4 years), real gross domestic product [GDP] has grown an average of 3.5 percent per year. In the nine prior quarters, average GDP
growth was an anemic 1.1 percent.
Investment Growth. Business investment has increased for 15 straight quarters,
reversing a previous nine-quarter decline.
Stock Market Gains. Despite recent market corrections, the Dow Jones Industrial
Average remains 41 percent above its 2003 level.
Overall Revenue Growth. Total Federal revenue has increased from 16.5 percent
of GDP in 2003 to 18.5 percent this year – exceeding the average percentage of
the past four decades (yes, believe it or not, tax cuts INCREASE federal revenue)
Annual Revenue Surges. Revenue grew by 14.6 percent in 2005, 11.5 percent in
2006, and 9.3 percent in the first five months of fiscal year 2007.
Deficit Reduction. This revenue growth has the principal factor in reducing the
budget deficit from $412.7 billion in 2004 to an estimated $214 billion this year,
according to the Congressional Budget Office (the deficit has been cut in half in only 3 years – which is two years ahead of schedule – it’s a safe assumption that unless Congress does something to halt economic growth then the deficit will be virtually eliminated within the next 5 years).
These are the facts. Tax cuts are a major factor in economic growth. There is no other way to explain these numbers, and remember this is happening despite rising oil prices, two major foreign wars and the economic shock that occurred after 9/11. Tax cuts WORK! And now the Democrats want to completely reverse this progress in favor of the largest tax increase in American history, most likely so they can fund their huge entitlement programs. This is the wrong way to go. This is NOT what America voted for in 2006.