But after all that massive tax cutting created the greatest economic expansion in history, only then did Reagan agree to compromise and raise a few taxes in return for serious spending reduction. Compromising after the economy has turned around, and a magnificent expansion is underway, is far different than raising taxes in the middle of an economic crisis. To compare the two is fraud.
Democrats have used Reagan's "compromise" as an excuse to paint Republicans who refuse to raise taxes as "extreme." Republicans should turn the tables. Whenever a Democrat like Obama wants to raise taxes, Republicans should point to Democratic hero John F. Kennedy as the ultimate tax cutter and call Democrats “extreme” for ignoring the success of JFK’s tax cuts.
I'm also sick of hearing Democrats call today's tax rates "historically low." That is once again a lie. There are many factors that determine your tax bill- like deductions and tax credits. Overall, we are all paying among the highest taxes ever. That is why "Tax Freedom Day" is now set at April 3rd. That means the average taxpayer has to give the government all his money until April 3rd, just to pay his tax burden.
Yet in 1900 "Tax Freedom Day" was January 22nd. Facts don't lie folks. If taxes are low as Obama keeps claiming, then why does it take until April to pay our taxes, versus mid-January in 1900? Because Obama is lying. Our tax burden is today just about the highest in history.
Perhaps stupidest of all is the idea of raising "revenue" instead of taxes. GOP politicians spout this nonsense all day long. You can’t claim to be against tax increases, but then vote to “raise revenues” by eliminating deductions. How is that different? If my taxes go up, what difference does it make how it gets there. If I used to owe $10,000 to the IRS, but now I owe $15,000, didn't I just lose $5000? Does it matter if tax rates went up, or my deductions were eliminated? You can disguise your words, but you can’t hide the truth.
Here's some common sense for the economically ignorant in Congress. This entire Great Depression II was created by the collapse in residential real estate values. Reduce or eliminate the mortgage deduction for upper income taxpayers, you will automatically wipe out about one third of the value of every high-end home in America. Entire upscale suburban neighborhoods will be decimated overnight. Foreclosures will skyrocket. Residential real estate will take a final dive, causing a new bank crisis. Wealthy consumers will slow their spending. We are looking at a total collapse of the U.S. economy- caused by ignorant politicians. Unfortunately some of those ignorant politicians are Republicans.
Lastly, Republicans need to point to the EU as an example of high taxes damaging or destroying an economy. If higher taxes help an economy, why is the EU insolvent and on the verge of a Great Depression? Why aren’t Greece, Italy and Spain models of economic success?
The GOP’s role is not to assist Obama in crippling business owners and job creators…in destroying even more jobs…in damaging the U.S. economy even further. If Obama wants to do that, let him commit economic suicide alone- and accept all the blame.