NOYB wrote:
wrote in message
oups.com...

Dan J.S. wrote:
The economy is very strong, if you have not noticed. Growing at a steady
rate. Tax cuts did this (all while tax receipts are up too)...

That's ridiculous.
The economy moves into and out of recession without tax cuts.
Prior to GWB's tax cut, how many recessions subsided *without* any tax
cuts?
Plenty.



Right now our government is like a couple of hillbillies who
accidentally acquire $200,000 in credit cards. As they're spending each
card to the max and hauling home truck loads of useless consumer junk,
they can't believe how "rich" they suddenly are.

If tax receipts are up, government spending is up far, far, far more.
Train wreck, dead ahead.

Tax receipts *are* up. Which means that from now on it will be awfully hard
for Democrats to whine that tax cuts cause deficits.

Increased spending...from wars, and military build-ups, and natural
disasters...cause deficits. But not tax cuts.


Nonsense.

The government can increase spending as much as it likes, as long as it
has the revenues to pay for it.

Increased spending alone, and tax cuts alone, do not create deficits.
Deficits result from the failure to balance income and outgo. If the
government wants to spend more money, it needs to collect *enough* more
money to cover the increased expenditure, (not just "some" more money).
If the government wants to decrease taxation, it needs to decrease
spending by as much or more than the tax cut.

I have stated many times that I don't have a problem with tax
cuts...provided they are coupled with spending cuts. What we have now
are tax cuts and spending increases.

Regardless of the excuses for increased spending, (invasion of Iraq,
sort of responding to hurricanes, etc)fiscal reality says that any
entity must generate enough income to cover the increased spending.

Take the NOYB household. Let's say you earn $400k a year from your
practice and take home $250k. (just a guess based on some dentists that
I know, don't be insulted.....). Mrs. NOYB runs the household on $240k
a year, so you've got enough left over for a week in the Bahamas once
in a while. The next year, Mrs. NOYB comes to you with a household
budget that calls for the expenditure of $350k, not $240k. You tell her
that will be fine because you expect your billings to go up 15% during
the year. Now you're earning $460k and taking home $300k so you can
claim that you have additional income, but the household spending (not
the lack of income) is going to put you in deep doo-doo before too many
years go by.