@old europe,
old europe wrote:
okie wrote:You doubt tax policies are a function of left and right? You can't be serious, can you? Its not about proving you wrong, its about common sense.
Well, it would be nice if your theory that cutting taxes always leads to more tax revenue would work in actual reality, but it seems that it doesn't. And, since running a balanced budget also seems to be what you see as a conservative policy, you'll have to deal with deciding between two 'conservative' principles: cutting taxes
or run balancing the budget.
In Germany, the conservatives decided to run on a platform of raising taxes and balancing the budget.
Cutting tax rates can increase tax revenue, and cutting tax rates can sometimes decrease tax revenues, depending upon where we are on the Laffer curve, to the left or to the right of the peak in terms of tax rates, that is what I believe. The Laffer Curve does exist, it has to, by virtue of simple mathematical and economic principles. 0% tax rate brings in no tax revenue, and 100% would bring in a paltry sum compared to some rate in between, which would represent the peak of a parabolic curve. I know, we have argued about this to no end already, but come on, common sense tells us it exists. Where the peak is, I don't know, it could vary depending upon situation or point in the economic cycles otherwise, and the exact shape of the curve could vary, but the overall general shape would look like the Laffer curve.
In regard to raising or lowering tax rates and balancing the budget, there are several variables. Conservatives believe in balanced budgets, but they also believe in smaller government, so the political struggle sometimes revolves around reducing taxes as a means to reduce future spending or to limit the invention of new programs, but if conservatives believe that spending is about right and they can control new budgetary increases, they may actually support increasing taxes to balance the budget. So, the situation dictates what conservatives will support, yes, sometimes raising tax rates, but more commonly we are in favor of lowering tax rates, for two possible reasons, one being it may actually bring in more tax revenues by stimulating the economy, and secondly it sometimes is our only means to try to reign in spending. From my observation of politics, if more revenues come in, liberals will increase the pressure to institute even more programs and even more spending, that will increase budgetary pressures in the future, making balanced budgets even more difficult in future years. So it becomes a game of tug of war.
The problem as I see it currently is that government has gotten too big, too expensive, and too invasive, to the point that it will become increasingly difficult, probably impossible, to balance the budget. But I see it, and most conservatives see it as a spending problem, not a problem of insufficient taxati0n. If tax rates keep rising alot more, it will only continue to strangle the economy to the point that there still will not be enough money to pay for all the government that we have and plan to have.
In contrast, liberals see the problem as simply not enough taxation, not a problem of too much government. It appears to me that they see the economy as a one dimensional organism, it produces what it produces, and if they want to tax it more, just like magic it generates more tax revenue without it affecting the economy one iota. This has to be the case, otherwise they would agree that the Laffer Curve exists.