Help refute this Re: Bush tax cuts leading to record revenues

[TheFarseer]

I'm sick of Sean Hanitty saying this and I can't articulate why he's wrong.

[NC_Nurse]

1. Why are you listening to that asshat?

He doesn't deal in reality.

[TheFarseer]

4. maybe I'm punishing myself

maybe I just like to know what the Repugs are saying. Maybe I'm sick of my CDs and sports talk is getting old.

[denverbill]

2. Here's a couple of ideas.

#1, if cutting taxes increases revenues, why did Reagan RAISE Social Security taxes to 'save' Social Security in the 1980's, and why do Republicans never suggest cutting Social Security taxes to 'save' Social Security now?

#2, if cutting taxes increases revenues, raising taxes should necessarily cause revenue to fall. Why did Bush Sr's tax increase cause a large increase in tax revenue?

[MNDemNY]

3. 1+1=2 2-1=1

[sandnsea]

5. $97,000 FICA cap

In 1999 it was $72,000. That's nearly 15% on $25,000 for a whole lot of workers. Someone should do the math.

[AndyA]

6. Record revenues for BUSINESSES

Many of them profiting directly from the EXPENSIVE WAR IN IRAQ, which *SOMEONE* will have to pay for at *SOMETIME*.

All these record revenues have come at the expense of the middle and lower class in America. Which is why:

- Household income is DOWN
- Poverty is UP
- More Americans have no health insurance

So, there's really no reason to get excited unless you're wealthy, or a business owner that caters to certain industries that are profiting from these ridiculous, fiscally irresponsible Republican policies.

[iamjoy]

7. Inflation Maybe?

I dunno, of course revenues are up - the cost of everything is up. So, are those revenues adjusted for inflation?

Next question - if revenues are up why is the government talking about cutting spending for things like education and highway funding - and oh yeah, healthcare for children?

[unpossibles]

9. more importantly

the general population is growing which usually means the working population is growing, therefore there are going to be more revenues as population itself expands, barring a large and massive unemployment rate which cancels out this growth.

Also, as other posters have pointed out, the wealthiest sector is growing - and the only one which is getting richer - therefore skewing the average and the total.

[TheFarseer]

15. maybe revenue PER CAPITA

would be a more useful statistic or adjusted for inflation as you suggested. My favorite line is - why isn't the budget balanced if we have record revenues?

[stillcool]

8. Sean Hannity is absolutely correct!

20 most profitable companies
1. Exxon Mobil
The oil giant racked up $39.5 billion in earnings last year, the largest-ever profit in U.S. history. That figure topped the previous record of $36.1 billion, also set by Exxon Mobil, in 2005. Profits were up 9.3% from the previous year, while sales rose 2.2%.

2. UAL
The holding company that controls United Airlines returns to the Fortune 500 after emerging from bankruptcy in February 2006. With net income of $22.9 billion, it's the second-most profitable company on the list. However, UAL's big profits were mostly due to bankruptcy-related accounting. Revenues are up 11.3% over last year.

3. Citigroup
Profits fell by 12% to $21.5 billion at the banking giant in 2006. But it still ranks as the third most profitable company on the list. In the face of dwindling earnings, it's not surprising there have been changes: CEO Chuck Prince brought in a new COO, Robert Druskin, while CFO Sallie Krawcheck moved to the global wealth management unit. Layoffs of 17,000 were announced in April.

4. Bank Of America Corp.
Earnings increased by 28% to $21.1 billion at the financial services giant, helped by its $35 billion acquisition of credit-card issuer MBNA. Revenues surged by 39%.
Fortune

5. General Electric
The conglomerate's $20.8 billion in profits last year represented 27% growth. Earnings were buoyed by strong performance at its NBC television, medical-equipment, turbine, and engine units.

6. Pfizer
Sales were up just 2%, but cost-cutting, as well as the sale of the company's consumer-products division to Johnson & Johnson, helped profits jump 139% to $19.3 billion. Still, like many of its Big Pharma counterparts, Pfizer is scrambling to make up for the blockbuster drugs it has going off-patent, like allergy remedy Zyrtec.

7. Chevron
Earnings of $17.1 billion were up 22% year-over-year, bolstered by Chevron's $16.4 billion acquisition of Unocal. That deal, as well as its 2001 purchase of Texaco, makes the company the second-largest U.S. oil outfit, behind Exxon Mobil

8. ConocoPhillips
No. 5 on the Fortune 500 this year is another big oil company that's reaped handsome profits thanks to record crude oil prices in 2006. But it wasn't oil prices alone: ConocoPhillips managed to boost profits by 15%, to $15.5 billion, on only 4% revenue growth.
Fortune 500: See the full list
http://money.cnn.com/magazines/fortune/fortune500/2007/full_list/

and the Iraq war surely helped many companies see record profits...like
DynCorp, KBR, Northrop Grumman, Raytheon, Vinnell Corporation, Titan Corporation

[annabanana]

10. And WE get the magnificent benefit of "trickle down"

[stillcool]

13. pissed on and pissed off. n/t

[TheFarseer]

16. I'm talking revenues for the Federal Gov't not corporations

although that was some interesting info

[stillcool]

17. No way!

maybe Imhoffe told him?

http://www.cepr.net/documents/publications/forecast_2006_11.pdf

http://research.stlouisfed.org/publications/review/06/07/Kotlikoff.pdf

[Milo_Bloom]

11. Record Debt creates Record Revenue

The "revenue" is completely independent of the "tax cuts" and can be explained by the rate of debt increase in middle class families.

[Bitwit1234]

12. You could have it in red and white and Hannity would still spew lies.

[ThoughtCriminal]

14. Here's some help

http://www.cbpp.org/9-27-06tax.htm

http://www.washingtonpost.com/wp-dyn/content/article/2007/01/05/AR2007010501801.html?nav=most_emailed

Edit:

And Dick Cheney's "favorite" source confirms that it's BS
http://www.factcheck.org/taxes/supply-side_spin.html