Barack Obama has said the current economic collapse is the "final verdict" on the Bush/McCain economic policies. Republicans are saying it's not the policies, it's the execution. Lowering taxes raises revenues, lowering taxes raises revenues, lowering taxes raises revenues. The only reason it's never worked is because spending was never under control. And the only reason deregulation hasn't worked is because people got greedy.
My mom used to say "If we had ham, we could have ham and eggs, if we had eggs."
I'll stipulate: taxing at 100% would stifle the economy. You stipulate: taxing at 0% would stifle the government. Clearly, there's a range, a taxonomic sweet spot. Reagan never found it, Bush and Bush never found it. Clinton seems to have. During his presidency, the economy soared, revenues leapt, the budget was balanced. Over the objections of the Newtonian congress, with only Democrats favoring, taxes were increased. It's been argued that it was only after certain tax cuts were forced, in 1997, by the Republican congress, that the economy really took off. Well, maybe. It's interesting, though, that as soon as things started falling apart under Bush, Republicans immediately started blaming it all on Clinton. So which is it? 1997 was the reason for everything wonderful, or the 1993 plan was so evil it caused problems even after it was Reaganized?
Here's the thing: let's assume it was the 1997 Republicans that saved the economy. Maybe that was, in fact, the sweet spot. What, then, about the increased tax cuts of George Bush? Might we not all agree that he missed the zone? That a return to the tax status of 1997 might, in fact, make sense? And isn't that, after all, what Obama and the Democrats have been proposing? Get back to the tax levels which were, in fact, a compromise between Clinton's 1993 plan and the Republican push-back; and which the Republicans are touting as the real reason for Clinton's success? Seems like an easy agreement. We already made it once.
If we cut taxes, we'll balance a budget, if we cut spending.