For almost 100 years, from the moment the income tax was instituted, conservatives have insisted with increasing hysteria that taxes are what kill the economy. Not taxes on you or me, of course. They’re not much concerned with those, as they’ve proved time and again. No, they’re talking about the taxes on Bidness and the Rich. You know, the “trickle-down” theory, wherein there seems to be a hard-core, faith-based belief that if the rich get richer because they don’t have to pay taxes like the rest of us, why, they’ll “invest” that “extra” money to create more low-paying jobs, and thus a tiny portion of their wealth will “trickle down” to the lower economic strata.
There is zero evidence to suggest, let alone prove, that economies work this way, but that doesn’t stop Grover “The Toad” Norquist’s Bathtub Battalion from claiming otherwise at the tops of their lungs. Our so-called “president”, acting in his capacity as chief mouthpiece and corporate rip-off enabler, was out on the hustings yesterday saying the same old shit, decorated by his usual smirk.
“The message is unmistakable: America’s economy keeps growing, government revenues keep going up, the budget deficit keeps going down — and we’ve done it all without raising your taxes,” Bush said during a speech at the Eisenhower Executive Office Building, where he introduced two small-business owners, a member of the National Guard and the parents of eight children. He said they all racked up big savings thanks to the tax cuts.
“When you’ve got more money in your pockets to save, spend or invest, this causes the economy to grow,” Bush said, adding that “a growing economy has led to growing tax revenues. Because people are making more money, they’re also paying more taxes.”
Like everything else Bush says (“How do you know when Bush is lying? His lips are moving”), it isn’t true. In point of fact, the economy has been growing at pretty much the same 2-3%/yr pace that it did during the 90’s. There are a couple of big differences, alright, but they’re not in the rate of economic expansion, a fact that even faux-economists at the conservative propaganda unit, The American Enterprise Institute, have been forced to admit.