Deficit Drops to 1.2% of GDP

This graph was posted over at RedState.

It is interesting to see just how the tax cuts passed when during the Bush presidency effect the economy.  It is proof that lower taxes actually increase the tax collections of the federal government.  Keep this in mind as we get into the election season coming up during 2008.  Which party advocates lower taxes and which party advocates raising taxes.  If you don’t know, the Republicans advocate lower taxes while the Democrats advocate raising taxes.

To be fair, the Democrats usually say they want to raise taxes on the wealthy and corporations.  I want to tell you though that this is a meaningless claim.  All taxes are actually paid by the end consumer.  This is because tax increases are passed on in the form of higher costs for the goods purchased by the end consumer.  So any and all tax increases will be paid by everyone…not targeted as the Democrats like to claim.  Keep that in mind also as you go to the ballot box.

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