Talking point #337: Our economy is more the function of a profitable business community than any other single factor, or the sum of all other factors combined.
Click on image to expand
recession is not a function of tax revenues. Now, keep in mind that I am a retired carpenter, a layman, but, after 5 years of reading everything available from reputable sources on the net (and a few hard copy books), the above is my observation -- and this chart is evidence of my point.
Again, taxation plays little role in the function of the national economy
The grey lines on the chart mark recessionary periods. There have been ten such periods, as contrary to Obama's childish observation, there will be more -- they are cyclical in nature, period.
You have my point, stated three times to this point in the post. Take a look at the chart to see what I am saying:
In the 1950's, corporate taxes were at historic highs, yet, three recessionary periods are recorded before Kennedy came along (in '60-'63) and lowered tax rates, across the board. Note: lower taxes - no economic slowdown for a decade.
Note the increase in corporate revenues in the late '60's followed by tougher times in the '70 to '80 decade.
Note reduced tax revenues '75 to '80, yet, the very difficult recessionary period in and around the Carter years.
Note the spike in corporate revenues, yet, recession was just 5 years away.
The '90's saw a very consistent tax base, but, just before the recession of 2000, there was an increase in corporate taxes collected (Clinton reduced the corporate tax and revenues increased); a mild recession followed.
Under Bush, again, we see a very stable revenue period followed by the recession we are experiencing.
And what is the patter activity observed? There is none; whether "up" "down," or "level," recessionary periods happen as a function of the economy, not as a function of some "tax fantasy," whether conservative or liberal minded.
Point of post: to validate my opinion that corporate tax structure does not play a significant role in function of the economy. Democrats claim higher taxes bring better times. Republicans argue that lower corporate taxes do the very same thing. A careful look at the chart in this post proves that corporate taxes do not effect the function of the economy, itself, for more than 5 years at a time. Both parties, as it turns out, over-play their claims.
Conclusion: there is no reason to believe that government intervention from the Left or the Right plays a long term role in health of the economy. "Profit" is the key to upward mobility and the long-term healthy function of our economy. Higher/lower taxes do not seem to effect this capitalist fact of life to any serious decree.
Our economy is more the function of a profitable business community than any other single factor, or the sum of all other factors combined.
Please note that I know "proof" as in "here is proof" is almost always a misstatement of scope. "Here is the evidence" is the preferred wording, except when writing a headline -- blog editor.
