Comments on: Politically Correct http://www.deliberatelyconsidered.com/2010/12/politically-correct/ Informed reflection on the events of the day Wed, 15 Jul 2015 17:00:00 +0000 hourly 1 https://wordpress.org/?v=4.4.23 By: Truth Defeats Truthiness: Election 2012 « Jeffrey C. Goldfarb's Deliberately Considered http://www.deliberatelyconsidered.com/2010/12/politically-correct/comment-page-1/#comment-26128 Sat, 17 Nov 2012 00:08:08 +0000 http://www.deliberatelyconsidered.com/?p=1336#comment-26128 […] and not the magical ideological thinking offered by market and religious fundamentalists (as I also previously examined) and by various xenophobes and racists (who promise to take their country […]

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By: Truth and Politics and The Crisis in Washington « Jeffrey C. Goldfarb's Deliberately Considered http://www.deliberatelyconsidered.com/2010/12/politically-correct/comment-page-1/#comment-15294 Mon, 01 Aug 2011 16:16:09 +0000 http://www.deliberatelyconsidered.com/?p=1336#comment-15294 […] we, at Deliberately Considered, have been calling fictoids. And I expressed deep concern about a new wave of political correctness about the way the magic of the market and highly idiosyncratic interpretations of the constitution […]

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By: Michael Corey http://www.deliberatelyconsidered.com/2010/12/politically-correct/comment-page-1/#comment-3326 Wed, 22 Dec 2010 19:32:34 +0000 http://www.deliberatelyconsidered.com/?p=1336#comment-3326 Tax policy issues are ideal for deliberate consideration. The tax issue is especially interesting once we are able to get by the sound bites. The equation is pretty simple: revenues minus spending equal either a positive (surplus), negative (deficit) or neutral (balanced) result during the time frame considered. Revenues are the result of tax rates times dollars assessed. Therefore tax rate reductions may or may not contribute to deficits depending upon the amount of economic growth there is, the change in the amounts of what is assessed and the tax rate; and the increase or decrease in absolute spending. The inverse may also be argued about tax rate increases. Government accounting policies make deliberate consideration of this issue very difficult. No business would choose to operate by the principles used in government accounting.

The biggest source of disagreement tends to involve whether or not changes in marginal tax rates in selective areas influence economic growth over time. Supply side economists suggest that they have the data to prove that they do, and others may argue with their conclusions.

It can be argued that all other things being equal, capital investments will flow towards the most favorable tax rates because this will yield the highest after tax returns, which by the way also happens to be very good for economic growth and tax revenues. Also, the more income after taxes citizens have, the more money they will have available for debt reduction, spending, saving or investment, all of which tend to be positives for the economy.

Higher economic growth tends to be associated with higher employment, and potentially more rewarding work if more value added businesses are allowed to start up and grow. The welfare of everyone is better served by a more prosperous society than a slow growth economy stripped of value creating industries. Prosperity has the potential to be a win-win for everyone. Governments, which continually spend beyond their means eventually, fail, as do the citizens that they serve.

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