The successful Clinton economy was based on tax cuts. No, really...

At the end of this year, America will be looking down both barrels of one of the biggest tax increases in history: the expiration of the 2001 and 2003 rate reductions on income and dividends/capital gains. It's seldom a good time to raise taxes, but the imposition of the old rates during a recession may guarantee a Hooverian result. The country needs further tax reductions and an even larger reduction in spending to stimulate recovery.Though there is some disagreement about where the Laffer Curve bends, most agree that higher rates can and do reduce tax revenue and that the Curve allows for a point at which further tax rate reductions won't stimulate economic activity and create a corresponding increase in Treasury receipts. The United States hasn't found the latter point yet. Unfortunately, Democrats controlling Washington are unwilling to seek it.Reasonable people of all political persuasions will acknowledge that tax cuts worked for Democratic President John Kennedy and Republican...(Read Full Article)

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