With the beginning of the income tax, ecomonic growth in the U.S. has exploded. Germany and Japan almost took down the world, it was only the U.S.'s massive government spending that saved us. You don't understand people the work at NASA also go to Walmart. If you cut funding at NASA, revenues at Walmart with drop. Thus, if you cut taxes at Walmart, revenues at Walmart will drop. You don't understand the movie industry revenues will drop if you cut Tom Cruises taxes, since City employees go to the movies too.
<<With the beginning of the income tax, ecomonic growth in the U.S. has exploded. Germany and Japan almost took down the world, it was only the U.S.'s massive government spending that saved us.>>
It's hard to engage in a discussion based on a gross caricature of historical events. WWII's deficits were counterbalanced by a tremendous postwar industrial boom that decisively ended those deficits. I don't think our present situation is analagous.
If you want to know what massive entitlement spending and massive taxes produce, you need to look no farther than Western Europe. The people on the dole are having a great time while the economies head for the precipice. Reforms are blocked at every turn by vocal and angry opposition groups. Businesses are struggling in many sectors and heading for eastern ("new") Europe where there are less taxes and restrictions...same story, same lessons over and over and yet it seems we cannot bring ourselves to learn from them...and yet somehow bigger and better governments are still the answer to many people...amazing, really.
Governments change, but human nature remains the same...<sigh>
After WWII, we still had a massive debt, the debt was paid off over several decades. About 1980 the debt/gdp ratio was the lowest at 0.33. The reaganomics took over, the idea the more taxes you cut, the more revenues will produce based on Laffer and Friedman and other morons who basically made up economic rules to support the business and corporate owners. As for taxes, the bottom 50 percent should not even be paying taxes. You also assume tax money should be spent on entitlements, tax money should be spent on roads, subways, defense, clean-up, scientific research, ... Thats where the voters come in, you need to hire politicans based upon how they spend the tax payers money rather than writing blank checks to the police or whomever asks without performing any work.
the businesses headed for Eastern Europe will enjoy the benefits for only a short time since most of those countries are joining the EU and will have the same taxation and social welfare restrictions placed on them as a consequence...