“A tax cut means higher family income and higher business profits and a balanced federal budget.... As the national income grows, the federal government will ultimately end up with more revenues. Prosperity is the real way to balance our budget. By lowering tax rates, by increasing jobs and income, we can expand tax revenues and finally bring our budget into balance.”

It is the thing I agreed with the most.

Sounds like a mean spirited Republican to me.

Very Sensible. here's a cute little cartoon that explains "Quantitative Easing" - http://www.youtube.com/watch?v=PTUY16CkS-k&feature=share - Spread it around. :)

Taken to its absurd and logical conclusion a complete elimination of income tax would make both the country and the governement prosperous. Well the Prez failed to mention a little thing call the "law of diminishing returns". Or the point of "no return". Clinton had the situation well in hand when he left office. The economy was great and the budget was in surplus. The Bushes as usaul destroyed that.

@ Connor, How much plainer do you want it spelled out? The present situation our country is the perfect example of the quote. When taxes are too high, businesses do not hire. There is a margin on which all businesses must operate in order to remain solvent. If taxes are too high a business will either shrink or close, thus no revenue to support the government meaning less employment (no hiring and probably firing some employees OR going out of business!). When I was a child tax freedom day, the day in the year on which your tax obligation was over and you were then working for yourself, was at the beginning of April. It is now May 7th, that is 127 days into the year! That is OVER one THIRD of the year. When employment is high, revenues are high. When Unemployment numbers are high, revenues are down and the government pays the Unemployed out of the national treasury, i.e. money from the taxpayers. Lots of money going out, not much coming in. Get it? Our debt is so great at this point we are now paying enormous amounts in interest to other countries that have "bought" our debt. This is not a pretty picture and is very dangerous. It is Not a "Republican" thing. The Republican party is for small government and is being hampered by Big government spending. Both parties are at fault and spending Must be brought under control or we will be a third world nation. We are dangerously close. And by the way, JFK was a democrat! He stated the conservative ideology in that quote.

Waffler the quote does not say elimination. But I have to agree that absurd and extreme are typical Liberal reactions. Thanks for being consistent. :)

This is the right idea; however, the influence he received from his brother Robert changed this "right idea" and his policies went total left.

Carol clearly doesn't understand that taxes are actually at a low point already... nor that you don't lower them during a recession when federal spending needs to be increased to stimulate the economy and prevent depression. Waffler has it right here, King George W screwed us over and that needs to be fixed first, not by doing "more of the same" but rather return to sanity.

Carol, I think Conner was using sarcasm to make a point and I believe you missed it. Yes, Waffler, the Bush spending threw the economy into a hole and Obama is in the hole digging it deeper.

Liberalism must be a mental disorder. When taxes are raised it stiffles the economy, when they are lowered the economy booms. When taxes are reduced businesses expand, hire more people who pay taxes and government revenue is increased, thereby giving the socialists running things more money to waste on idiotic spending bills.

Geez....Louise.......THIS quote is such a NO-BRAINER. Unfortunately Obummer and his Regime HAVE NO brains.

The idiotic spending has NOTHING, absolutely NOTHING to do with social programs - when will you realized you are just touting the corporate line - God, they really had success with this bunch. WE SPEND ON MILITARY (over a trillion), Private Health care the most expensive and yet 37th in the world, and bureaucracy. Look, FOX news gave the GOP $40 million for this recent electoral farce - this is one example of many that is the route of evil in America - it has NOT ONE THING TO DO WITH LIBERALISM - when will you understand ENGLISH - look it up! I have given up trying to teach you because you just don't listen. You are not even true Libertarians when you talk like this - perhaps you should join the tea party.

Anonymous. During a recession is the best time to lower taxes. Higher taxes and more government spending does not stimulate the economy. Neither do bailouts and "stimulus" packages. The best way to imediately stimulate the economy is to lower taxes. This increases the amount of disposable income among citizens, which in turn increases their marginal propensity to consume (its called a Tax Multiplier). That leads to buying more and expanding businesses. The money used to do so is injected directly into the economy, thus stimulating it. That's macroeconomics 101.

This is not a 'conservative' quote -- it is an 'economic' quote based on logic and responsibility. The liberals may believe it is the government's job to provide for us, but what if the government is completely overdrawn at the bank? According to the liberal philosophy, there does not ever seem to be cause to stop borrowing for non-necessities, earmarks, and entitlements. Government does not produce anything -- taxes can only be laid on production -- if not, then the govt is simply taking from us what we have already produced and paid tax on. The govt is an insatiable leviathan that 'eats' every dollar it can get its hands on -- the majority of which pays for mega contracts to mega corporations. Remember that it is Congress that spends, and it was a Republican Congress under Clinton and a Democrat Congress under Bush. And yes, Waffler, as absurd and illogical as it may sound, letting people keep the fruits of their labors will make them more prosperous and thus can buy more things that the government will tax. In fact, the government survived quite well on only excise taxes for over 150 years. Socialist nations must operate in debt -- that is how the socialist money system works, it is the 'bizzaro' world of money in which when someone has $100 'dollars' in their pocket, they now OWE $100! Every so-called dollar is actually an IOU, a promissory note to the Federal Reserve. Every 'dollar' in circulation whether in bills, checks, or electronic bank account balances represents a dollar borrowed at interest. If all loans were paid back, there would be no more money -- and we would still owe more! That is the slavery that socialism promotes, and it should come as no surprise that with every recession, crash, crunch, depression, more and more of the people's property and labors are lost to the banks that simply created that money out of nothing but YOUR own promise to pay. To live in debt eternally is to be a slave -- it is more appropriately called 'servitude' to the state.

Archer...What do think of the idea of government, instead of taxing production, levies taxes on consumption? Instead of placing individual citizens in a tax bracket, place products to be puchased in a tax system in which people are taxed as they spend their income instead of as they earn it. This would render the IRS useless and give Congress the ability to stop funding it. The federal government would no longer have a reason to oppressively acquire insight into the income or bank account statement of the individual citizen, which in turn would transfer the power over the individual's paycheck back into the hands of the citizen. Those who cannot afford to pay taxes will buy less products, thus paying the least amount of taxes possible; the wealthy that can afford to pay more taxes will lavishly spend on products of luxury, thus paying the greater proportion of taxes. This seems to be the fairest system devised. What do you think?

Publius, this would create a black economy I believe a flat tax with no exemptions would be more favorable (this would also reduce the IRS considerably - cut military expenditure by 50% then more every year after. No political funding of politicians, period (have the media provide time which would be part of their license). Single payer system Medicare and do away with all other forms of state ins. This is just a start.....

Waffler, again you show that you're oblivious to any economic truths. The States United became the most prosperous, powerful, passionate, and giving of all nations on earth with out income tax shackles.

RBESRQ...I agree that a fair tax system may, to some degree, create a black economy, and in turn the money saved from not paying the IRS may have to be spent regulating transactions. However, a black economy also exists under the current system every time an employer pays an employee under the table in order to avoid both the payroll tax and the income tax. The tendency for the rise of a black economy due to a tax on consumption may prove to be beneficial. If taxes on a product are set too high, it would be sold on the black market and the government would receive no revenue from it. So the government would be forced to keep the taxes low and be rendered unable to oppress the citizens by such taxes. Also, it may be possible to set penalties for unlawful transactions high enough to discourage it. I do not have enough knowledge of the flat tax to comment on its pros and cons. As far as cutting the military expenditure, I also can make no comment, as I am unaware of the amount necessary to maintain the most powerful military in the world. I do beleive that America's military might must remain intact for our own national security. We must keep this strength, no matter how much money it cost. I'm not saying that it can't be cut at all, we just must be careful because if we cut this expense too much in order to save money, we may lose freedom. I am willing to sacrifice both my life and my fortune to secure the blessings of liberty for my children.

Publius, you talk a lot of sense until you get onto the subject of our military. Don't you realize that our military is the cause of insecurity in the world - It is absolutely disgusting how Americans can be proud of a military that is the cause of millions of deaths, destruction and misery throughout the world - are you CIA or FBI or ex military because if you are then I can understand where you are coming from. we have over 150 bases in more than fifty countries. Don't you think if the Taliban was able to pull off 9-11 they could easily pull off assignations all over America. American's need to wake up the the monster we have created.

RBESRQ, Don't forget to thank that military monster for protecting your freedom and enabling you to voice your opinion here.

@ Waffler, I agree with Carol, Georgia, but let's take your approach to its ultimate conclusion. What would happen if the tax rate were 100%? Dr. Laffer rightly suggests that revenues would fall to zero. I know I wouldn't be working if the government took all I had, unless I was forced to work through threat of pain...probably just your style.

Taken to the absurd and logical conclusion, a tax rate of 0% should produce lots of revenue? Nonsense. A tax rate of 100% also produces no revenue since it eliminates all economic incentive to engage in the taxable activity. The ideal rate is somewhere in between as the Laffer curve suggests.

How can you not agree with this! it makes perfect sense. As Buddha said "The Way is the middle Way" he took this from a father teaching his son to fish - he said to his son, hold the line neither tight or loose.

Too commonsensical to be susceptible to being apprehended by any whose perception of reality has been beclouded by Statist ideology.

One of the most pathetic things to be done to your children, Usury practiced upon our children at the hands of a stranger. Lands confiscated lest Tribute to the state is paid. Fearmongering by the IRS on behalf of a Congressional body of individuals who care less if their liberty and prosperity, they pay for with our tax dollars. Why should they care, harlots will sleep with anything for a buck. So has been the march across Europe of socialism's economic plagues of forced plunder and servitude. " Deliverance " welfare, from the oppression of man. The " deliverance " which our Creator provides and the power of resolve and intent, our Constitution drafted to protect such Welfare.

For those that would change the 2nd plank of the communist manifesto to a more fair system of theft - I here refer back to my earlier statement. Freedom and liberty need not a more fair theft but rather, less robber barons (government).

Publius, excise taxes are essentially consumption taxes or 'sales tax', which is added to the sale price. The problem is that politicians in seats of power are never satisfied with the tax revenue, so they keep coming up with new proposals for taxing the property and labors of whomever they can. The Commerce Clause of the Constitution has been stretched beyond its intended limits such that all private enterprise is considered inter-state commerce and thus to be regulated as corporate entities.

This transformation has been gradual, but today, the people's labors are being taxed directly by Washington DC -- this is not authorized in the Constitution even with the 16th Amendment.

The truth is that the US could issue both credit currency and hard currency whose values would not be fixed but determined by the market. The credit currency could be issued interest-free -- like the Greenbacks of old. Hard currency would be backed by a breadbasket of non-perishable commodities like metals.

All social services would be paid for with credit currency. This currency will deflate in value, but not nearly as fast as an interest-bearing script. And no one would be forced to accept credit currency in lieu of cash (hard currency).

The money printing press is to be put back in the hands of the People, not government.

The challenge is that the entire world is beholden to the central banks who are the REAL rulers. They know what they are doing!! The battle for the world still rages on -- ignorance of that is ultimately servitude.