Tag Archives: economic

AL FRANKEN SHREDS REPUBLICAN ECONOMIC THEORY

Reblogged from progressivetoo

Senator Al Franken, speaking to AFL-CIO on Monday, points out the glaringly contradictory schools of thought that define the Republican economic theory:

“So the idea that those at the very top, who now are richer than anybody has ever been; we now have people who are richer than any people have ever been in the history of the world; why they can’t pay a higher percentage of their income in taxes in crazy. Those of us in the Senate who are Democrats, we talk to people who are rich. I don’t know any of them I meet who don’t say ‘I’m willing to pay higher taxes’. I know the Republicans go to these same fundraisers and hear different things from their people, and I respect that.”

Franken goes on:

“But there is no evidence that that works. In 1993, when we had something called the Deficit Reduction Package, President Clinton said, ‘let’s raise the top two levels’ [a 2% tax increase for the top earning 1% of Americans]. Every Republican voted against it, every single one. It passed by one vote in the House and one vote in the Senate. Every Republican, well not every Republican, but every Republican who said anything said this will cause a recession.”

After taking a jab at Newt Gingrich, who said this would be the “Democrat recession”, Franken continues:

“It worked. We had the longest period of uninterrupted expansion of our economy in our history when we increased the marginal rate on the people at the top. So it worked. And not only that, but it turned a record deficit into a record surplus, which he took from one Bush, a record deficit, and turned it over to the next Bush, a record surplus.”

And then it gets interesting:

“Five days after George W. Bush became president, Alan Greenspan testified to the Senate Budget Committee, and said ‘we are in danger of paying off our national debt too fast. We have a projected $5 trillion surplus going into the next ten years and we very well may pay off the debt too fast, the federal government is in danger of having too much money.’ He said, what would happen as a result of that is, we will have to take our excess money and invest it into private equities and that could disrupt the market.”

Franken continues:

“Now I don’t get their economic theories. If you cut taxes it will automatically raise revenues. They always say that, you hear it all the time. Watch Fox sometimes, ‘every time we’ve cut taxes we’ve doubled revenues.’ That’s Sean Hannity, he says it everyday, just google it.”

Here comes the contradiction:

“Then they also tell us ‘you have to cut taxes so the government doesn’t have too much money to spend’. Reagan said it in 1981, ‘you can tell your kids all you want, not to fritter away their allowance, but the only way to do it is to cut their allowance’. He said this, you can look it up. So in other words, his thing was, you’ve got to cut taxes so you cut the revenue so their not going to spend the money. So understand, their theory is based on two mutually exclusive contradictory theories.”

So does cutting taxes double revenues or decrease them? Which is it? Franken explains:… Read More

via progressivetoo

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