. : Politics : .
I wanted to point out a very good article that was written recently by Thomas E. Nugent over at the National Review. It explains in fairly simple terms how lowering tax rates increased overall taxes collected. It is a fairly simple equation of give more back to the people and see what they do with it.
What they do with it apparently is invest it. This is a most beneficial mechanism for many reasons. First, we give more control back to the individual over what their money is used for. Second, with all of this extra cash, individuals are able to invest in many things. Now some of you are sneering most likely that they are investing in their own retirement. True, but in their own selfishness they fund things such as medical research, technology growth, education, and many other worthwhile things. Third, an increased wealth allows for greater dollar amount of personal giving. Once again the synical will point to people that hoard piles of gold. I don't know how everyone else uses their money, but I know how I and many others do and it is in a way that is beneficial to many others. A mainstream example of extreme wealth gone good is Warren Buffet's recent donation of 40 billion dollars to help fund medical research and other worth causes. He is specifically targeting the poor and is no doubt going to be able to make a great contribution to the entire world.
The Bush tax cuts are up for renewal and need to be passed in order to continue this level of growth for our nation.
There are many other things that I could say about this system of macro/micro economics. If you have a specific question / critique, please leave a comment.