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MCK

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Last Word host Lawrence O'Donnell tracks how Ronald Reagan's "starve the beast" strategy is now working better than he ever imagined it would.


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Republicans have not always been the party of tax cuts. In ancient times, when they finally got the presidency back, after World War II, they were the party of the balanced budget. When Dwight Eisenhower was president, he refused to cut taxes even though the top tax rate was 92%. No one actually paid 92%, they had deductions that brought it down to an effective rate much lower, the actual statutory top tax rate was 92%, but Republican president Eisenhower thought balancing the budget was more important than cutting taxes. at a press conference in 1953, president Eisenhower said, the fact is there must be balanced budgets before we are again on a safe and sound system in our economy. That means, that we cannot afford to reduce taxes, reduce income until we have insight a program of expenditures that shows the factors of income and outgo will be balanced. now, that is just sheer necessity. Balancing the budget to the Republican presidential mind in the 1950s was sheer necessity. The next Republican presidents, Nixon and Ford, like Eisenhower before them, resisted tax cuts well into the 1970s. both Nixon and Ford actually supported some tax increases. Then, in 1976, the late Jude Wanisky,  wrote his bit of economic coaching for Republicans in the " wall street journal." the political tension in the marketplace of ideas must be between tax reduction and spending increases. As long as Republicans have insisted upon balanced budgets, their influence as a party has shrivelled and the budgets have been unbalanced. The political tension in the marketplace of ideas must be between tax reduction and spending increases. Guess which side Jude wanted the Republicans to be on? After President Ford's defeat in his re-election campaign, the Republican party was wide open to the new ideas driven by thinkers like Jude Winniski, and so the idea of "starve the beast" took hold. The beast, of course, being government, starving it meaning cutting its revenue by cutting taxes. Here's how Alan Greenspan, who had worked for President Ford, described the purpose of tax cuts in a Senate finance committee hearing in 1978. Let us remember that the basic purpose of any tax cut program in today's environment is to reduce the momentum of expenditure growth by restraining the amount of revenues available and trust that there is a political limit to deficit spending. Then, the most famous presentation of the star of the bea -- starve the beast approach came three years later, from President Reagan, shortly after he was inaugurated in 1981.
Frankie B

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I have been asking Republicans what ever happen to the Republican motto of "Means Testing."  Not only can't they answer me, I think that they don't remember what that is.
MCK

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Quote:
Originally Posted by Frankie_B
I have been asking Republicans what ever happen to the Republican motto of "Means Testing."  Not only can't they answer me, I think that they don't remember what that is.

You're right, they have that means testing in reverse.  They are giving the people's money to those who don't need it and deny any help to those who desperately do need it.
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