Obama Win or Loss, Deficit Fix Will Still Require a Grand Bargain

"In other words, the terms of the Grand Bargain—entitlement cuts in exchange for higher taxes on the wealthy—remain the crux of our paralyzed deficit-reduction politics. Even if Obama loses in November, Democrats in Congress are going to continue insisting on those terms."

Bill C. increased taxes on rich and Newt reduced. Newt got better results. Have you missed Newt saying he balanced budget 4 times. Bill C. before Newt didn't. Liberal thinking is reduce tax on rich and revenue goes down. Newt sucess was reducing cost not allowing big Bill C. growth. Bill added debt and Newt surplus:

"Debunking Liberal Myths About Tax Cuts and the Economy"

"MYTH: Raising taxes in the 1990s caused the boom years of that decade. This proves that raising taxes leads to economic growth."

"FACT: Tax cuts, not tax hikes, caused the boom years of the 1990s. The economy grew modestly after Clinton raised taxes in 1993, but the economy grew even more after Clinton signed the tax cuts that were passed by the Republican-controlled Congress under Newt Gingrich’s leadership in 1997."

"Dr. J. D. Foster":

"Following the [Clinton] tax hike, the economy performed reasonably well, but not as well as one would expect given the conditions at the time. The real economic boom came later in the decade, just when the economy should have slowed as it made the transition from a period of recovery to normal expansion. Further, this acceleration coincided to a remarkable degree with the 1997 tax cut. . . ."

"In 1997, the Republican-led Congress passed a tax-relief and deficit-reduction bill that was resisted but ultimately signed by President Clinton."

"In 1995, the first year for which these data are available, just over $8 billion in venture capital was invested. Venture capital is especially critical to a vibrant economy because high-risk/high-return investment permits promising new businesses to blossom, rapidly spreading new technologies and new ideas into the marketplace and across the economy. Such investments, when successful, generate returns to investors that are subject primarily to the tax on capital gains. By 1998, the first full year in which the lower capital gains rates were in effect, venture capital activity reached almost $28 billion, more than a three-fold increase over 1995 levels, and by 1999, it had doubled yet again." (http://www.heritage.org/Research/Taxes/wm1835.cfm)

http://www.mtgriffith.com/web_documents/taxcutmyths.htm

Bill Hedges of MO 6:07PM January 25, 2012