Recession - Catastrophe - Depression....or how about TAX CUTS!

Well, you have to hand it to Obama, he has a great way of manipulating expectations.

During the campaign, he was the great savior of hope and change.....but now that he has taken office, the President has lowered expectations to the point that, if we don't tumble into the next great depression, he thinks he'll go down in history as the greatest president of all time!

Now, let's be fair. President Obama has inherited a mess. The greatest crisis since the Great Depression?? Well I am not so sure about that. From what I have learned, unemployment and the economy were actually in worse shape when President Reagan took office in January of 1981 than they are today. But it seems our President only knows of two periods in American history - the last 8 years and the Great Depression. Unemployment in January of 1981 was at 7.5%, in January 2009, 7.2%. In Jan 81, inflation was at 14%!!!!!!!! Today, it's extremely low and depending on the report hovers between 1% - 3%(it's going to trend higher with all the deficit spending we are doing, but as of today, inflation is low).

So, President Obama, before you talk about how tax cuts don't work, and how tax cuts have resulted in us getting into this mess, let's get the facts out there for people to understand:

1. Taxes are down a couple of percentage points today, compared to where they were pre-Bush.
2. President Reagan turned the economy by instituting massive tax cuts.

From a report by the Congressional Joint Economic Committee, circa 1996 comes the following:

"The Reagan tax cuts, like similar measures enacted in the 1920s and 1960s, showed that reducing excessive tax rates stimulates growth, reduces tax avoidance, and can increase the amount and share of tax payments generated by the rich. High top tax rates can induce counterproductive behavior and suppress revenues, factors that are usually missed or understated in government static revenue analysis."

The full text can be read here http://www.house.gov/jec/fiscal/tx-grwth/reagtxct/reagtxct.htm

President Obama, you are flat WRONG when you say tax cuts do not work. In fact, reducing taxes on the highest earners (business and top income individuals) actually INCREASES tax revenues. I Know, this is something you and the other Liberals in America just don't understand. Further proof that Liberals just don't get it when it comes to economics.

President Reagan cut the individual tax rates, across the baord, by 25%!!! And guess what, the economy grew. The wealthiest Americans stopped hiding their money in tax shelters and actually paid MORE taxes! Not only that, but middle and low income Americans paid LESS in taxes!

Ummmmm HELLO PEOPLE!!!!

The real solution is right before us. It is NOT massive spending. Tax cuts, tax cuts, tax cuts for EVERYONE AND EVERY BUSINESS!

The stimulus bill, ie porkulus as it is being called is going to have serious consequences. Huge deficits that will have to be paid back. A further lessening of the value of the US dollar which WILL result in inflation, the likes of which we have not seen since the Carter Administration. When inflation hits 15% and it costs $6 for a box of Cheerios, you can thank both the out of control spending allowed by the Bush Administration and the Republican led Congress of 2000-2006 AND Persident Obama and his Liberal pals and the policies and plans they are about to implement.

Permanent, decisive and large tax cuts on businesses, capital gains, and individuals across the board, coupled with a 30-40% reduction in the Federal budget is THE only answer that will solve the current economic downturn we are experiencing AND allow us to be positioned for future economic growth without the heavy burdens of uncontrollable deficits and runaway inflation.....

Mr. President, it is time to do the RIGHT thing....