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When have Democrats EVER agreed that tax cuts help the economy? They don't even believe it when tax cutters quote their paradigm of virtue John Kennedy when he cut taxes across the board, and said, "A rising tide lifts all boats." If they believed in it on Kennedy's evidence, they wouldn't have been so hell-bent against it when Reagan proposed it.
Democrats know it works but have too much invested in denying it because that's the way they have combatted Republicans for so long. They can't change now. They won't change now even though they know it would be the right thing to do for policy, but they think it is the wrong thing to do politically. They just can't agree with anything Republicans have supported for so long.
The reason that many people don’t believe that Reagan’s and especially Bush’s tax cuts lift everyone’s income is that it isn’t true. The chart below is for real median income for full time white male workers, i.e. “Joe Six Pack.” Joe’s real median income rose consistently through 1973, but has essentially stagnated since that time. Joe exceeded his 1973 income only in the years 1999 and 2000. (Real median household income continued to grow through the end of the 1990's due to women's workforce participation growing from 45% to 60% and a reduction in wage discrimination.)
Looking at how Joe fared after tax cuts, Joe’s income continued to go up after the Kennedy tax cuts lowered the top marginal rate from 91%. Joe’s income initially went down after Reagan lowered the top rate from 70% to 50%, but then grew after the economy recovered from the Volcker induced, inflation busting recession of the early 1980’s. Oddly, Joe’s income did go up when Clinton increased the top marginal rate, again a period of economic growth. Joe’s income then went down again when Bush lowered the top rate to 35%, even during periods of overall economic growth.
Based on this data, lowering the top marginal rate from 91% to 70% was good for Joe. Although other factors may have been at work, lowering the top marginal rate from 70% to 50% appears to have helped Joe. But Bush’s tax cuts clearly haven’t helped Joe.
2006 $45,933
2005 45,129
2004 45,467
2003 46,199
2002 46,371
2001 46,454
2000 47,129
1999 47,449
1998 45,948
1997 45,239
1996 44,455
1995 44,027
1994 43,641
1993 43,738
1992 44,443
1991 44,686
1990 44,985
1989 46,585
1988 46,285
1987 46,356
1986 46,718
1985 45,912
1984 45,886
1983 44,471
1982 44,600
1981 45,049
1980 45,941
1979 46,548
1978 46,400
1977 45,534
1976 44,957
1975 44,075
1974 44,718
1973 46,773
1972 45,986
1971 42,991
1970 42,837
1969 42,552
1968 39,912
1967 38,715
1966 38,163
1965 37,160
1964 35,871
1963 35,155
1962 34,197
1961 33,510
1960 32,414
http://www.census.gov/hhes/www/income/histinc/p36w.html
"When have Democrats EVER agreed that tax cuts help the economy?" The answer to that is: Yes. John F. Kennedy argued vehemently for tax cuts in order to stimulate the economy. Funny how democrats idolize Kennedy yet have amnesia when it comes to Kennedy's fiscal policies. Kennedy's tax cuts were passed after his death.
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