It didn't work when Reagan lowered taxes in the 80's and unleashed the power of the U.S. economy that was held back for years. Remember the 80's? They were years of monstrously strong growth. Since, the economy hasn't looked back.
It didn't work when Russia, yes Russia, lowered taxes across the board. In fact, they came out with a flat tax. This unlocked powerful economic growth not ever seen in Russia.
It didn't work again when George W. Bush lowered taxes. Nah! We were only coming off a recession, a stock market bubble, a huge TECH bubble that caused numerous jobs to be lost, loss of capital gains for the treasury by the market going south, and oh yeah, 9/11, which destroyed the airline and travel industry for a time as well as America's psyche.
I guess it is a figment of my imagination that the U.S. economy is now cooking. I guess all the great news out of the travel industry, the job market, corporate America and the housing market don't matter. You see, according to some, lowering taxes does not help. And for some ridiculous reason, the American public should not get another tax cut.
It is my contention that it is never a bad time to lower taxes. This economy is back directly because of the Bush tax cuts. Without them at one of the more important junctures in our economic history, there is no way our economy would have bounced back to the shape it is in. This country has been built on rewarding success, not penalizing success. Tax rates are still woefully too high, and with the spector of $55 oil taking away a lot of the tax cut, it is time for another one. After all, it is our money. After all, tax cuts do not work. Right?
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Gary Kaltbaum is president of money management firm Kaltbaum & Associates. He can be heard nightly on his nationally syndicated radio show "Investors Edge" on over 50 radio stations. He is a regular on FNC's Business Block. Visit Kaltbaum's Corner on TradingMarkets.com for more.