Quote from Gord:
Uh - no. This implies that government tax revenues decrease because of reduced tax rates. This is a liberal myth that is not supported by the facts.
President Kennedy deeply cut taxes in the early sixties and government revenues continued to grow each year. Ronald Reagan severely cut taxes in the early eighties and government revenues almost doubled by the end of the eighties. The deficit was caused by enormous spending increases, on the military by President Reagan to defeat the USSR, and by the Democrats on social programs (the trade-off Reagan had to make with them). But revenues increased, not decreased. The economy eventually grew out of the deficit in the mid nineties with help from the Republican Contract with America which held back government spending, and the defeat of HillariousCare. President Bush again seriously cut taxes early in his first term and government revenues have continued to increase each year (except the first - until the effect of the cuts kicked in), even though Bush inherited a recession from the Clinton administration, and the impact of 9/11 on the economy alone was almost two trillion dollars. And don't forget the stock bubble crash of /00, and the Enron, Tyco, Worldcom, Global Crossing, etc. fiascoes - all included in President Clinton's legacy I might add. If these had happened in the early nineties it is likely there would have been much less growth throughout that decade.
Growth through the impact of the tax cuts (without increased spending) would eliminate the deficit within a few years. Again however, increased spending on entitlement programs (a new drug program has been added, and Katrina) have hampered the reduction of the deficit.
Tax cuts do not cause deficits - excessive government spending does. Presidents Kennedy, Reagan and Bush have demonstrated that tax cuts on a national level increase government revenue through economic stimulus.