Rudy Giuliani on Taxes

August 7, 2007 at 9:45 am | Posted in American politics, rudy giuliani | 13 Comments

The way to do it sometimes is to reduce taxes and raise more money.

He continues:

For example, I ran the city — I ran a city with 759 bridges; probably the most used bridges in the nation, some of the most used in the world. I was able to acquire more money to fund capital programs…. I was able to raise more money to fix those bridges by lowering taxes….

Pray tell us, Mr. Giuliani, just how did you raise money if you lowered taxes?

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  1. The theory (which often but not always works) is that decreased taxation leads to increased economic activity. Of course, this only works if you control spending at the same time, something the feds haven’t quite gotten a grip on. Some will argue this doesn’t matter since debt spending as a percentage of GDP has dropped substantially, but you won’t count me among them.

  2. Jesse,

    I don’t think I asked the question right. See, Giuliani was saying that he, as mayor was able to raise the funds necessary to maintain New York’s bridges while lowering taxes. How was he, as mayor, as the state basically, able to raise the money while lowering taxes?

    I understand the principle some espouse that somehow lowering taxes raises them because magically people make more money somehow and tax revenue increases.

  3. That principle is called voodoo economics, or supply side economics and it has never been shown to work as far as I know, for our nation’s tax system.

  4. Dan, Jesse answered the question you were trying to ask. The theory goes if you lower taxes thats supposed to create increased economic activity which theoretically could create more tax money even though the tax rate is lowered.

  5. Unfortunately that theory is bunk.

  6. Well yeah-I don’t believe in supply side economics, but I thought that was a given. There’s just too many other factors that always go into a play for making it work. I was just explaining the theory, not editorializing.

  7. I knew that that was what Jesse was saying, but I was rephrasing the question because Rudy Giuliani is attempting to take credit for something that doesn’t exist. As such, the question is a good one for Mr. Giuliani. Just how did he manage to raise money by lowering taxes?

  8. This is way too easy. The original post points to why Giuliani was able to lower taxes and yet had enough money to repair bridges. But you probably knew that, right? Or if you didn’t, I have a feeling you may say you did. (I’m just ribbing you a bit)

    Guiliani lowered, taxes and yet raised more money…..”because this happened to coincide with the stock market boom of the late 90s.” So, his strategy worked because of an outside factor.

    Yes, he’s taking credit for an outside factor that he had no control over which I alluded to in an earlier post. That being said, politicians taking credit for economic factors they have no control or little to no influence all of the time…on both sides.

  9. Sherpa,

    RIght, so…it wasn’t Giuliani who actually did raise the money. The stock market boom of the late 90s had nothing to do with the taxes he cut…so where exactly did he raise the money while lowering taxes?

  10. Dan, I answered your question and explained that it was an externality going on. Why are you asking me that question again? Why are you trying to debate with me when we agree?

  11. The stock market boom of the late 90s had nothing to do with the taxes he cut…so where exactly did he raise the money while lowering taxes?

    I answered the answer to this question in my previous post also. Listen, I agree with you. I’m not sure why you’re continuing to ask me questions, when I simply hopped on this thread to clarify. You’re treating me like someone who doesn’t agree with you…..and yet I do, and I said I have. There’s nothing to debate here with me.

  12. Oh, its not an externality…its just an outside factor.

  13. Sherpa,

    We are in agreement. I am trying to place myself in front of Mr. Giuliani and press this question further, because he’s a bald faced liar in this case.


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