Fiscal Clif Hysteria

Tax revenues will grow with economic growth and tax cuts - not Govt spending increases - grow the economy as per the following:

SOURCE: US TREAS. DEPT:

- for every tax-cut dollar on capital gains, $10.61 of new GDP is created

- for every dollar of tax-cut from accelerated business investment tax write-offs, $9 of new GDP is created 

- for every dollar of corporate tax-cuts, $2.76 of new GDP is created

SOURCE: THE INTERNATIONAL MONETARY FUND:

- every additional dollar of government sending creates only $0.70 of GDP; therefore, government has to borrow $1 to get 70 cents back

SOURCE: US CONGRESS JOINT COMMITTEE ON TAXATION: 

- 80% of new jobs are created by small businesses and new business start-ups

- 75% of all small business profits pass-through to the personal income of the owners, and small business owners earning income of over $250,000 a year are 50% of all small business income.

Other studies confirming that tax cuts result in economic growth and that tax increases and increases in government spending result in lower economic growth and declines in the economy have been done by: US Bureau of Economic Research and Harvard University and the European Central Bank - following are some quotes from these studies: "REDUCING GOVT. DEFICITS RESTORES CONFIDENCE...GOVT. SPENDING CUTS ARE BETTER THAN TAX HIKES... CUTS IN GOVT. SERVICES AND ENTITLEMENTS ARE INDEBTED NATIONS' SUREST WAY TO RECOVERY"