November 14, 2013

Salim Furth

Salim Furth

Tax hikes, not spending cuts, are what’s holding down economic growth, Heritage Foundation economist Salim Furth reports:

The U.S. implemented both tax increases and spending cuts in 2013, but the tax increases were two to four times larger. Taking into account that the tax increases were larger and that tax increases have larger economic effects, we can safely conclude that any “austerity”-induced slowdown is due primarily to tax increases. Neither the basic historical facts nor the economic research on the topic give support to the idea that sequestration is the villain in 2013’s poor economic growth.

He concludes that “policymakers can allow higher growth and more jobs without adding to the deficit by replacing taxes with spending cuts.”

Do you think the government should raise spending, as many liberals propose?

Comments (14)

Ellen Elmore - November 19, 2013

No, the government should not raise spending. How long can the government get away with this out of control spending before it defaults on the debt? The U.S. credit card should be torn up and thrown away.

Dan Nichols - November 19, 2013

It is obvious to anyone who has the slightest knowledge about economics that the way to stimulate the economy is to reduce taxes, cut spending & useless regulation. If that were to happen, jobs would be created and our country might be able to begin to get back on our feet. However, this is something the current administration either doesn’t want to do or is unable to do. The first thing that’s needed is for the liberals to shut up and get out of the way.

Bob Green - November 19, 2013

“To compel a man to subsidize with his taxes the propagation of ideas he disbelieves and abhors is sinful and tyrannical. I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.” – Thomas Jefferson

It’s as true today as it was 50 years ago; but the liberals won’t even consider that their entire economic policy structure is fatally flawed. Even Democratic icon, President John F. Kennedy understood how the government could stimulate the economy…and it damn sure wasn’t through irresponsible spending and tax hikes:

“Tax reduction thus sets off a process that can bring gains for everyone, gains won by marshalling resources that would otherwise stand idle — workers without jobs and farm and factory capacity without markets. Yet, many taxpayers seemed prepared to deny the nation the fruits of tax reduction because they question the financial soundness of reducing taxes when the federal budget is already in deficit. Let me make clear why, in today’s economy, fiscal prudence and responsibility call for tax reduction even if it temporarily enlarged the federal deficit — why reducing taxes is the best way open to us to increase revenues.” — President John F. Kennedy, Economic Report of the President, January, 1963

Daniel E Conway - November 19, 2013

Why can’t the Liberal Mind grasp that Taxes are revenues removed from the National Investment pool, and from Private Consumption? These are both essential for a thriving Economy. It’s exasperating!

DEC
Glendale CA

Diane Moore - November 19, 2013

Of course the government should not increase spending! Do they think we are brainless. STOP THE SPENDING!!!

John Bergin - November 19, 2013

We have committed entirely too much of GDP to government spending. We waste billions evidenced by the fact we have taxpayer money to attack Christians, we have money to promote fraud in elections, we have money for the IRS and EPA to attack enemies of the administration, we have money to support Al Sharpton to promote racism. This is all done at taxpayer expense. The Department of Education has become a socialism advocate, the DOE has never fulfilled any valuable role certain ally not energy independence. Homeland security is a joke! We could easily eliminate 75% of all government Bureaucracy.
Cut spending and taxes by 25% and the economy will roar!
The deficit will disappear in 20 years. Time is short we are in a danger zone.

Bob Macklin - November 20, 2013

NO, do not raise government spending! Stop the graf; clean up the waste by reducing the size of government departments, formulate a budget and get on with business. Continuing Resolutions are not the way to run a business or a government!

Patricia D’Amico - November 20, 2013

Tax increases only make things worse -our economy is in ruins, thanks to Mr. O & his Democrat followers. And prices everywhere are skyrocketing – including health costs and ALL KINDS OF INSURANCE, not just Health Ins.!!!!!!

SUENELL - November 20, 2013

Well, as usual…anything coming out of Obama’s mouth has room for doubt.Or is just a flat out lie. He says what he thinks people want to hear. At the same time, he wants his way or the highway for those who think differently. Obama has proven over and over again his talent for being incompetent. He is a good talker, but not a good doer.
While I’m at it, I’m sure many have noticed he is the most unaware president we have ever had. How many times has he said he did not know about a certain situation? Well, that is just stupid. He knows. He just prefers to pretend he does not. He thinks Americans are really dumb anyway.
Of course, we should not increase government spending. This is an easy task. Bring home all…yes, all the troops from overseas. The US should have a superior military. This military would be trained to defend the US. Perhaps they would go overseas on some missions, but come back as soon as the mission is accomplished (only a few months). They would be deployed to help in situations such as natural disasters. They would be well trained to work in all sorts of areas as well as short engagements.
Also, stop giving money to those countries who are not our true allies. Do we really think that support goes to the poor of those nations? NO. Most of it goes to those who least need it. Otherwise, those citizens of the poor nations would be much better off. Are they better off now? NO. Graft. Theft. Cheating. Stealing. Most heads of state of those “gifted” countries are wealthy, wealthy, wealthy. How did they get all that wealth? Guess!!!
That’s all for now.

Paul Bucher - November 20, 2013

I cannot spend more than I have in my budget, why do the politicians think they can, they need to pass a budget and cut out all the Government fat, overpriced salaries for not even doing their job, all the waste and free programs and forein aid needs to be cut out and a lot of people need to quit getting a free ride!

Virginia Kesler - November 20, 2013

Absolutely not!!! We have to live on our salaries or, in my case, pensions. They should cut their spending, like we must when times get tough.

Eugene Landauer - November 23, 2013

Last time I had my brain engaged 5.5 million health ins.
policies cancelled equals about 17 to 18 million people if you figure at least 3 people to a family lost their health care. How do you people come up with only 5.5 million people lost their health care, refigure.

Marlene Rone - November 23, 2013

Absolutely not. I would be happy if Republicans would gain a backbone and call the President on his unconstitutional decisions made without going through Congress as he is supposed to when he changes a Law. Spending has to stop.

Holly Chapo - November 24, 2013

Do we have to go through this every year? CUT SPENDING. There are so many legitimate places where this can be done. But, once again, Congress just won’t do it. Almost all of them need to be thrown out.

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