Cutting to the Chase: Tax Cuts Work

Tax cuts work — I don't know any other way to say it.

This isn't a political argument or a class warfare argument. It's math — simple math.

Because look past the demagoguing on the issue, to the dollars at issue.

More of them — a lot more of them — because taxes were cut.

Need proof? Take a look at tax revenues: they're soaring — up nearly 12 percent this year. That's enough to push the budget deficit down to $247.7 billion in 2006, the smallest in four years.

That's 22 percent lower than just a year ago and more than $150 billion less than what top economists predicted not even 18 months ago.

I know it's "politically correct" to say tax cuts rob the government of money. It's just not "factually" correct. Because the simple fact is when you give individuals extra dough, they'll buy things — which triggers demand for things and hiring of people to make those things.

So let's tax cut to the chase: Entrust folks with more of their money and the government will end up getting more money — period.

Now the problem has always been the government spends that money and then some. Spending is the problem, not tax-cutting.

Look, deficits of any size shouldn't be dismissed. And a Baby Boomer generation about to pounce on Social Security and Medicare benefits means fiscal time is a-wasting. But increasing taxes won't solve that problem. Targeting where that tax money goes will. That's another debate.

Here's where there clearly is no debate: tax cuts aren't the issue, but getting rid of them, just could be.

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Neil Cavuto serves as senior vice president, anchor and managing editor for both FOX News Channel (FNC) and FOX Business Network (FBN). He is anchor of FNC's Your World with Cavuto - the number one rated cable news program for the 4 p.m. timeslot - as well as the FNC Saturday show Cavuto on Business. He also hosts Cavuto on FBN weeknights at 8 p.m. In addition to anchoring daily programs and breaking news specials on FNC and FBN, Cavuto oversees business news content for both networks and FNC's weekend business shows, including Bulls & Bears, Forbes on Fox, and Cashin' In. Click here for more on Neil Cavuto.