Looks like its time for more tax cuts, but that wont happen till 2008 and only if Republicans retake congress. Now that the Dems have congress it will be interesting to see who the media blames when the economy is not so rosy. I assume it will be Bush as always, but what happens if it cotinues down and a democrat is president. Will they get the blame like Bush did in 2001 or will Bush get the blame still. Im guessing the latter. Luckily even a small increase results in nearly 200 billion more dollars in peoples pockets.

BEA: News Release: Gross Domestic Product

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http://www.fairtax.org

Elminate all taxes on income and replace with a national sales tax.

That's funny. I was taught that recessions are normal and are needed from time to time to keep things in check. I never knew that if we just kept passing tax cuts we would never have recessions. Forget the fact that we need infrastructure to keep things going. Anyway, we are going into a recessions possibly but exports are rising thanks to the value of the Dollar compared to the Euro and Yen so the markets are able to remain on an upward trend.

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"Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!"

You're happy that export numbers are increasing due to USD devaluation?

What happens to that miserable GDP number when government deficit spending based on debt is subtracted?

Increased exports are good for our companies which is good for me since I have invested in the stock market.

__________________
"Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!"

A tax cut is a proven way to inject the market. All of a sudden people have billions more dollars to spend or invest. We are far from a minimum taxation level and there is plenty of room to cut. I have to wonder what rediculous growth we would have had the govt not been taking 20% of the wealth every year and wasting a lot of it.

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http://www.fairtax.org

Elminate all taxes on income and replace with a national sales tax.

It becomes 1.1%. But then I could be misunderstanding you as usual. Im no economics professor.

__________________
http://www.fairtax.org

Elminate all taxes on income and replace with a national sales tax.

You're neglecting to mention that for any measure of success government reductions in spending must accompany tax cuts. That hasn't been the case.

While I will not argue with the fact that taxes can be so high as to harm growth I have a feeling that you would go to such a extreme on the other end that it would cause other kinds of harm.

__________________
"Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!"

Actually it has. If your review the budget youll see plenty of cuts. This has not translated to over all decreases in the depts but just in the rate of growth. This is enough to allow natural economic growth to catch up with govt growth. Which is why we are nearing surpluses again. But dont mistake that as support for growth. I would happily cut to the hilt the govt. And lower taxes at the same time. But if Ill take whatever I can get.

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http://www.fairtax.org

Elminate all taxes on income and replace with a national sales tax.

Natural economic growth in a post-industrial debtor nation migrating to a service economy is an oxymoron. Where are these surpluses going to come from with record government expansion and deficit spending forecast into 2012 by idealistic political budgets with accompanying increases in debt service using a devalued currency?

As usual, you lost me. Please speak in laymans terms.

__________________
http://www.fairtax.org

Elminate all taxes on income and replace with a national sales tax.

increases in debt servicing with a devalued currency eh??

well the debt is in the same devalued currency this of course means the nominal value of the debt is decreasing with the value of the currency. Now maybe if the government issued debt in euros and paid things back in dollars then we would be trouble - but that is not the case. I am not sure what the hell a devalued dollar has anything to do with debt servicing other that pissing of foreign holders of our debt.


Natural economic growth in a post-industrial debtor nation migrating to a service economy is an oxymoron.

Mind explaining how that is an oxymoron?


And I suppose surpluses would come from the record tax revenues being generated by record corporate profits. The deficit has been decreasing each year for several years now. Tax revenues from corporations have continued to exceed budget forecasts and have been driving the deficit down.

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"Liberty is not a means to a higher political end. It is itself the highest political end - Liberty is the only object which benefits all alike, and provokes no sincere opposition - The danger is not that a particular class is unfit to govern. Every class is unfit to govern. - Power tends to corrupt, and absolute power corrupts absolutely." - Lord Action

This has been updated to now be 0.6% growth in the 1Q, 2007. I wonder if there is a coincidence between democrats taking over congress and the economy plummeting. Im pretty sure they accused Bush of the reccesion when he took over.

Regardless, we are in need of a economic infusion via tax cuts.

BEA: News Release: Gross Domestic Product and Corporate Profits

__________________
http://www.fairtax.org

Elminate all taxes on income and replace with a national sales tax.

yeah we all know taxcuts solve economical problems (sarcasm). I think you should have a good look at the system used in scandinavia. The governement supplies a lot of services for laberors and children which increase the workforce size and productivity, leading to a high gdp and good economical growth. These countries are doing just as good as the USA.

lowering taxes for economical growth is a short term policy, basically its boosting the economy now by shifting problems to the future (increased debt). Taxcuts aren't as good as some people make it seem.

Good cheap health care, governement programs for child daycare, subsidized jobs for the unemployed and cheap loans to those who recieve education structurally increase the size and quality of the labor force and the economy. Ironically not by lowering taxes, but by increasing them.