The Republican macro economics likely to come into play when Republicans take over the Senate, will project revenue gains or at least lower revenue looses as a result of lowering tax rates. The formula in hand is called Dynamic Scoring.
The idea is that if you account for th e multiple in the GDP, lower taxes will place more discretionary money in circulation which will be spent multiple times thus creating multiple taxable events. This really works when we have a significant multiple in the GDP. (Money supply times a multiple equals GDP) Unfortunately, the multiple in our current GDP is at an all time low. Therefore, Dynamic Scoring if it fails to take into account the low multiple will likely perpetuate a myth of wishful thinking.
Furthermore, Dynamic Scoring could become a smoke screen to shield from taxation the sequestered wealth concentrated at an unsustainable level in the hands of a few Americab Oligarks. Political economists (an oxymoron) with their fundamentalist beliefs, fail to comprehend the devastating loss of wealth suffered by the American people resulting from outsourcing of jobs, manufacturing and the long standing and ongoing trade dedicate. Nor do they understand the mechanism from which the people's wealth finds its way back int the hands of banking Oligarks.
A thriving economy does not result from low taxation for the rich, it depends on productivity and turnover -- sometimes called velocity. Dynamic Scoring should reviel at least some of that reality, but it is more likely to be used as a sound bite for the personal benefit of politicians without regard to economic reality.
The idea is that if you account for th e multiple in the GDP, lower taxes will place more discretionary money in circulation which will be spent multiple times thus creating multiple taxable events. This really works when we have a significant multiple in the GDP. (Money supply times a multiple equals GDP) Unfortunately, the multiple in our current GDP is at an all time low. Therefore, Dynamic Scoring if it fails to take into account the low multiple will likely perpetuate a myth of wishful thinking.
Furthermore, Dynamic Scoring could become a smoke screen to shield from taxation the sequestered wealth concentrated at an unsustainable level in the hands of a few Americab Oligarks. Political economists (an oxymoron) with their fundamentalist beliefs, fail to comprehend the devastating loss of wealth suffered by the American people resulting from outsourcing of jobs, manufacturing and the long standing and ongoing trade dedicate. Nor do they understand the mechanism from which the people's wealth finds its way back int the hands of banking Oligarks.
A thriving economy does not result from low taxation for the rich, it depends on productivity and turnover -- sometimes called velocity. Dynamic Scoring should reviel at least some of that reality, but it is more likely to be used as a sound bite for the personal benefit of politicians without regard to economic reality.
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