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By A Smith (anonymous) | Posted November 14, 2008 at 20:51:30
Highwater, let me put it another way...
If the American people want the Chinese to fund their military, allowing them to spend more on social programs then they otherwise would be able to, then they will have to pay a price for that (which I think explains the dollar drop and subsequent rise in oil prices).
Is that better?
As to your point about funding tax cuts, what does that mean? Does cutting tax rates cost money?
Under Carter, tax rates on the rich were 70% and government revenue was 28.92% of GDP.
Under Bush II, top marginal rates are 35% and taxes comprise 30.42% of GDP (2007).
Lower tax rates have increased the money government brings in.
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