December 18, 2012 10:52PM
Updated: January 20, 2013 6:03AM
Tax cuts necessary
It is appealing to think the rich do not pay their fair share of taxes and raising their tax rates will solve our problems. Unfortunately, the “Wall Street Journal’s” Stephen Moore (also an economist) recently noted Americans are already more dependent on the wealthy than most socialized economies of Europe.
We get 45 percent of our taxes from the top 10 percent of tax-filers, whereas the average in industrialized nations is 32 percent. We also have 47 percent who pay no federal income tax. Obama’s tax increase on the rich will only cover 8 percent of our annual deficits.
Tax rate increases are bad. Christina Romer was chair of Obama’s council of economic advisors. She co-authored a study of all significant tax changes since 1947 finding that tax increases have a large rapid negative effect on output and a large rise in unemployment. It also concluded tax cuts have a large positive effect on output.
A politically-biased Tax Policy Center (TPC) comparing apples and oranges, falsely tried to claim tax rate increases raise revenue. The “Wall Street Journal” (WSJ) said the TPC ignored history. The WSJ said every major tax rate cut of the last 50 years was followed by an unexpected large increase in tax revenues and a surge in taxes paid by the rich.
Former president, Bill Clinton, raised tax rates and economic growth dropped. Four years later, he worked with Republicans, lowering tax rates, and economic growth increased. Presidents Kennedy, Reagan and Bush lowered tax rates, producing increased tax revenue and economic growth while reducing unemployment.
President Kennedy pointed out,“It is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.”
Robert C. Lemke
‘Junior’ cares about us
One of the best things that was done in the state of Illinois and in Will County was to put Larry Walsh Jr. in the state House of Representatives. He stated, when he took this job, that he would work everyday for all of us.
He hit the ground working. One of the first great things he was able to accomplish was the installation of the signs with yellow and red flashing lights warning all vehicles of a very dangerous intersection at Route 53 and Schweizer Road near Chicagoland Speedway. This intersection is the scene of many serious accidents, such as the one of 16-year-old Brittany Pirc of Elwood.
Thank you Larry for being a representative that cares about all of us.
Jackson Township Highway Commissioner