"It is a paradoxical truth that tax rates are too high and tax revenues are
too low and the soundest way to raise the revenues in the long run is to cut
the rates now ... Cutting taxes now is not to incur a budget deficit, but to
achieve the more prosperous, expanding economy which can bring a budget
surplus."

"Lower rates of taxation will stimulate economic activity and so raise the
levels of personal and corporate income as to yield within a few years an
increased - not a reduced - flow of revenues to the federal government."

"In today's economy, fiscal prudence and responsibility call for tax
reduction even if it temporarily enlarges the federal deficit - why reducing
taxes is the best way open to us to increase revenues."

"It is no contradiction - the most important single thing we can do to
stimulate investment in today's economy is to raise consumption by major
reduction of individual income tax rates."

"Our tax system still siphons out of the private economy too large a share
of personal and business purchasing power and reduces the incentive for
risk, investment and effort - thereby aborting our recoveries and stifling
our national growth rate."

"A tax cut means higher family income and higher business profits and a
balanced federal budget. Every taxpayer and his family will have more money
left over after taxes for a new car, a new home, new conveniences, education
and investment. Every businessman can keep a higher percentage of his
profits in his cash register or put it to work expanding or improving his
business, and as the national income grows, the federal government will
ultimately end up with more revenues."

"In those countries where income taxes are lower than in the United States,
the ability to defer the payment of U.S. tax by retaining income in the
subsidiary companies provides a tax advantage for companies operating
through overseas subsidiaries that is not available to companies operating
solely in the United States. Many American investors properly made use of
this deferral in the conduct of their foreign investment."

"In short, it is a paradoxical truth that ... the soundest way to raise the
revenues in the long run is to cut the rates now. The experience of a number
of European countries and Japan have borne this out. This country's own
experience with tax reduction (nine years ago) has borne this out. And the
reason is that only full employment can balance the budget, and tax
reduction can pave the way to that employment. The purpose of cutting taxes
now is not to incur a budget deficit, but to achieve the more prosperous,
expanding economy which can bring a budget surplus."




--
The Tea Party that counts is November 2, 2010