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Author Message   Tom Reingold Supporter Username: Noglider Post Number: 5741 Registered: 1-2003 Posted on Tuesday, March 8, 2005 - 9:24 am:        This is a common theme for Andrew Tobias: http://www.andrewtobias.com After today, you can access this column at http://www.andrewtobias.com/newcolumns/050308.html   Maple Man Citizen Username: Mapleman Post Number: 517 Registered: 6-2004 Posted on Tuesday, March 8, 2005 - 9:39 am:        I wish I could find the citation, but I saw an interesting budget projection recently. It completely debunked the idea that Bush's tax cuts will ultimately lead to higer treasury revenues, and eliminate (or at least cut into) the deficit. Because of cuts in taxes on sources of income that tilt toward the very rich (and if you're posting on MOL, you're not who we're talking about. I mean A-Rod money), it is impossible for tax revenues to increase sufficiently to close the deficit, even if the economy takes off. The reason is, that the kind of income that people make in a roaring economy (capital gains, dividends) won't be taxed at a rate that will bring in substantial revenue. Tax cutters always invoke the Laffer Curve to support their desire to cut. But it appears that the Bush cuts have actually put us on the left side of the Laffer Curve, not in the optimal middle range. Being on the left side leaves the treasury with less revenue, even if we have a booming economy.