Lower tax rates grow the economy and generate more tax revenue.

[LionsDen]

Lower tax rates grow the economy and generate more tax revenue.

Higher tax rates kill growth.

From an email from the conservative, Christian Family Research Council:

Taxes Cut, Deficit--not Sky--Falls

Liberals wrung their hands when President Bush first proposed tax cuts back in 2001. It would ruin the economy and balloon the deficit, they wailed. Now, we are seeing the deficit falling rapidly. This year's deficit of $296 billion is 30 percent lower than projected just last February. That's a $127 billion decline from that February forecast. Revenues have increased, accounting for 90 percent of the deficit reduction. This is an historic moment and President Bush is right to call attention to the success of his pro-growth economic policies.

FRC supported those tax cuts, especially the pro-family portions of the tax package. Now we see that they are working to the benefit of all Americans. It's not only a victory for President Bush, it's also vindication for Ronald Reagan. When he first proposed massive tax cuts in 1980, Reagan was criticized for "voodoo economics." Later, liberal pundits blamed President Reagan for the deepening recession that began on Carter's watch. But, as Reagan's tax cuts began to work, and America rebounded, he smilingly said: "You'll notice they don't call it Reaganomics any more." Thank you, President Bush, for staying the course

This worked for Presidents Kennedy, Reagan, Clinton, and G W Bush.

God made human beings to be success-motivated. When we can keep more of what we earn, we earn more, create more, and produce more. It's human nature... that's economic conservatism at its finest.

More from our President...

Together, these tax cuts left nearly $1.1 trillion in the hands of American workers and families and small business owners, and they used this money to help fuel an economic resurgence that's now in its 18th straight quarter of growth. The tax cuts we passed work. (Applause.)

Last year, our economy grew at 3.5 percent, and in the first quarter of this year, it grew at an annual rate of 5.6 percent. Over the past three years, our economy has grown by more than $1.3 trillion, an amount that is larger than the size of the entire Canadian or South Korean economy.

http://www.whitehouse.gov/news/relea...0060711-1.html

For news analysis of how the biased liberal media twists the good economic news, see http://www.nationalreview.com/lowry/...0311210905.asp

And finally from the Great Rush Limbaugh --

Bush Tax Cut Worked Better Than Expected

May 12, 2006

RUSH: (Wall Street Journal) "The Federal government ran a monthly budget surplus of $118.85 billion in April as tax receipts came in stronger than the same period last year." In fact... (AP) "A flood of income tax payments pushed up government receipts to the second-highest level in history in April, giving the country a sizable surplus for the month.

In its monthly accounting of the government's books, the Treasury Department said Wednesday that revenue for the month totaled $315.1 billion as Americans filed their tax returns by the April deadline. The gusher of tax revenue pushed total receipts up by 13.4% from April 2005."

Now, a question. How can this happen? How can this happen when we had tax cuts? How can it possibly happen when we have had tax cuts, ladies and gentlemen? Well, it happens because of the way we've always told you it happens: Tax cuts produce more revenue because they create more jobs equaling more taxpayers, and more taxpayers contribute more tax revenue while the aggregate tax payment per person comes down.

It works every time it is tried, if the top rate that you are reducing is not too low. You reach a point where you are not going to raise revenue if your tax rate is zero. There is a formula for this. It obviously works, especially with capital gains coming down to 15%. So this leads me to another question. What do liberals hate more than our president? Now, I'll give you a hint: it is one word. I'll give you another hint: it begins with "R." No, it is not Rush. It is not me. It has seven letters. Liberals hate more than our president, one word.

It begins with "R", and has seven letters. Don't bother figuring it out. I'll tell you. What liberals hate more than our president and me is R-E-A-L-I-T-Y. The tax cuts worked, and according to today's media, the Wall Street Journal and others, they worked better than advertised. Yet, only 15 Democrats in the house broke ranks with Pelosi and supported the extension of these tax cuts! Only three in the Senate! Only three Democrats broke ranks and supported the extension. Despite the evidence, the liberal rally cries the tax warfare cry. "Tax cuts favor the rich."

http://www.rushlimbaugh.com/home/today.guest.html

Bottom Line: Cut tax rates and grow the economy. It works every time it has been tried.