The Gift That Keeps Giving

I'm was at this event Thursday and I overheard a discussion between two obvious liberals about the tax cuts (search).

"We didn't need them," said one.

"And we've gotten all we can expect out of them," said the other.

Well, this pushy Irish-Italian anchor had to butt in:

"So let me get this straight: This tax cut feel good effect is already feeling bad?"

"Yes," the one guy replied. "We've shot it all."

"Oh really," I pointed out. "The strong retail sales, the incredible consumer confidence numbers, factories humming again, business hiring, albeit slowly again... all that a one-shot freak of nature."

"Yes," one of them, clearly annoyed responded. "It's all spent. What's the conservatives' next trick pony?"

"Well," I said, "If this is a trick pony, latch me on... because history proves it gives you one hell of a ride.

John Kennedy's tax cuts gave us about a 10-year pop, before taxes were hiked again.

Ronald Reagan's launched one of the greatest bull markets in history before many of those taxes were hiked again.

And this president's tax cuts have sent the economy soaring. That is, unless and until, some other brainiac gets the idea of reversing course and ramming them up again.

Look, cutting taxes equals a strong economy. Far from a quick nicotine fix, cutting taxes and keeping them cut, makes a huge difference in people's spending patterns, and in their spending plans.

I call it the gift that keeps giving, no matter where you are in the income stream. And many are finding it's still giving as they tally up their tax returns.

A full half-year of the tax cut was never factored in to reduced rates last year. That's why most taxpayers will see big refunds this year, which will likely contribute to big spending this year and beyond.

Because let me tell you something, when rates are adjusted lower, people set their expectations higher. We spend more. We save more. We do more.

It's a pity all we hear from politicians is them just prattling on more.

Watch Neil Cavuto's Common Sense weekdays at 4 p.m. ET on Your World with Cavuto.