The Five Trillion Dollar Lie

Romney is planning on cutting taxes by 20% across the board, in conjunction with eliminating some tax deductions.  The plan is to broaden the number of people who the Government collects taxes from while at the same time lowering the overall rate.

Obama counters by asserting that this amounts to a Five Trillion Dollar give-away to the rich over the next 10 years.  

The problem with Liberals is that they see taxation as a zero sum game.  They fail to realize that cuts in taxes produces more economic activity that produces more taxes

The whole thing reminds me of the Reagan era.  Let's face it, Reagan had a plan to cut taxes from 75% to 50%, then subsequently to 28%.  So overall, he cut the rates by 67%!  Or more than THREE TIMES what Romney's proposing. If Obama was running against then "Candidate" Reagan, he would have claimed that Reagan's plan would cut taxes by 15 Trillion in today's dollars.  However, the truth is, that Reagan's plan DOUBLED total revenue for the Federal Government over the 8 years that he was President.

In fact, if you look throughout history, every time that tax rates have been cut, Federal Revenue's end up increasing.  Why?  Simple.  When Job Creators get to keep more of their money, they create MORE JOBS.  With more jobs, the government needs to support less people and instead collect taxes from more people   Not just Income taxes, but sales, gas, Import, ... everything.

If we look to history as our guide, when Harding cut taxes from 75% to 25%, unemployment went from near 14% to less than 2% over the next 4 years AND paid down all the debt the Government had racked up from WWI!

When Hoover increased taxes from 25% to 63% in reaction to the Market Crash, instead of the anticipated boom in Revenue, revenue PLUMMETED with new company creation coming to a halt, and unemployment hitting 15%

When FDR increased the rate to 90%, revenue fell even more and unemployment hit nearly 1 in every 4 workers!  A stat that stuck for nearly an ENTIRE DECADE!  Only the War ended up pulling us out of that malaise.

Tax cuts passed after FDR eventually got the economy going again, but since they kept going up and down over the next several decades, not until Reagan was elected did we see another "Harding Style" revival of the economy.

Let's also not forget that the last time the budget was balanced was when Clinton cut the capital gains rate from 28% to 20%.  Sure he increased the "INCOME" tax from 28% top rate to 39%, but that happened during his first term and DID NOT close the budget gap, instead it widened on his first term!

The problem with Liberals is that they see taxation as a zero sum game.  They fail to realize that cuts in taxes produces more economic activity that produces more taxes, more jobs and removes people off government doles.  Increased taxes have the opposite effects, Job creators move to other countries or change operations to get out of paying the increased taxes.  Apple is a perfect example.  Apple used to manufacture most of their components here in the U.S.  With the tax and regulatory environment here in the U.S. becoming increasingly unfavorable, they moved their operations to the Asian rim, where the top rate is 25%, Capital investments are fully tax deductible and Capital Gains taxes are half what they are here and also tax deductible.  What good does it do California and the Federal Government to have an effective rate of nearly DOUBLE, when they've moved their operations offshore?  They now can't collect it.

There is one thing though that's undoubtedly true about that Five Trillion Dollar Number, while Bush added 4 Trillion in debt in his two terms as president, Obama has added 5 Trillion in new debt in just his first term.

Blacks: ‘SLAVISH DEVOTION TO THE DEMOCRAT PARTY’

The Bishop E.W. Jackson, founder of Chesapeake, Virginia-based Exodus Faith Ministries, recently released a controversial video calling for African Americans to make a mass exodus from the Democratic Party. Throughout the clip, Jackson delivers stinging blows to both liberals and the African Americans who continue to support them, while decrying what he sees as a “slavish devotion to the Democrat Party.”

They have insulted us, used us, and manipulated us. They have saturated the black community with ridiculous lies,” he said, speaking directly to the black community. ”They think we are stupid and that these lies will hold us captive while they violate everything we believe as Christians.
”Jackson went into detail in the video, taking aim at the “unholy alliance” that he sees between Democrats, faux-civil rights leaders and Planned Parenthood.
“The Democratic Party has created an unholy alliance between certain so-called civil rights leaders and Planned Parenthood, which has killed unborn black babies by the tens of millions,” he proclaimed. On the morality front, Jackson took issue with the party’s internal debate over “God” being dropped from its platform and derided the notion that homosexuality should be equated “with being black.“ He called the later tenet of the Democratic Party an ”outrageous lie.”

“We as Christians ought to know better. Shame on us for allowing ourselves to be sold to the highest bidder,” Jackson continued, telling his fellow black pastors that they, too, would need to make a decision between supporting Democrats and embracing Jesus.

Blacks should be OUTRAGED by the fact that "Margaret Sanger" is an AWARD that the Democrat Party still gives out, and yet she was one of the BIGGEST racist in the country.  She STARTED Planned Parent hood to "exterminate" the Negro population and would often speak at the women's branch of the KKK!