Skip to content

What’s the problem: Revenues or Spending?

An interesting article on the current situation of Government income and outgo.

…

“In fifty years, we have tripled overall federal revenue, and prior to the current recession/stagnation we had quadrupled it.  The current trough from the 2007 peak resulted from the fall in economic activity, not from tax cuts or any other intervention.  It’s similar to what happened in the prior trough, when the 2000-1 recession and the 9/11 attacks cut economic activity through 2003.

For that matter, look what happened to federal revenue after the much-maligned Bush tax cuts took full effect in 2003.  Economic activity expanded rapidly — and so did federal revenues.  In fact, the economy during that period boomed, and receipts from both personal and corporate taxes peaked as a result.”

…

The second chart explains what we have now:  spending continued to grow, even when revenues declined…read it all!

…

~Curtis in /\/\onTana! {!-{>

This was written by Curtis in /\/\onTana! {=-{>. Posted on Sunday, July 31, 2011, at 3:25 pm. Filed under Politics. Bookmark the permalink. Follow comments here with the RSS feed. Post a comment or leave a trackback.

Post a Comment

Your email is never published nor shared. Required fields are marked *
*
*