Given that the tax cuts created during the Reagan and now Bush administrations have increased revenues...?

Question

to the government by stimulating businesses, which drive our economy, why are liberals opposed to tax cuts? I am against over spending, but what is wrong with strategic tax cuts? (Intelligent answers only)

In response to Sen. Jack Reed’s (D., R.I.) questions about the revenue affects of tax cuts, though he regularly reminded committee members that he would like to steer clear of tax questions, it was apparent that Bernanke doesn’t hold the static view that says tax cuts represent “costs” to the Treasury. Bernanke noted that “tax cuts, if they’re well-designed, do increase growth "

If you believe it's wrong, show me the numbers, with a valid source.

"Moving from total tax revenues to budgets, there is one expenditure effect in addition to the two effects that tax-rate changes have on revenues. Because tax cuts create an incentive to increase output, employment, and production, they also help balance the budget by reducing means-tested government expenditures. A faster-growing economy means lower unemployment and higher incomes, resulting in reduced unemployment benefits and other social welfare programs.

Over the past 100 years, there have been three major periods of tax-rate cuts in the U.S.: the Harding-Coolidge cuts of the mid-1920s; the Kennedy cuts of the mid-1960s; and the Reagan cuts of the early 1980s. Each of these periods of tax cuts was remarkably successful as measured by virtually any public policy metric."
http://www.heritage.org/Research/Taxes/bg1765.cfm

Answer 1

because liberals would rather tax and spend. i think it may be at least partly because liberals prefer keynesian economics that distrusts that the micro-level economic effects created by tax cuts (everyone has a little more to spend or invest, which means that everyone will make a little more money, which means that there will be a little more money to tax, which is a whole bunch of money in the aggregate).

conservatives prefer classical economics - good ol' Adam Smith - and can trust that money has greater multiplier effects when put back in private hands than it does if the government takes it and "invests" (i.e., wastes) it for itself.

Answer 2

By and large they are of the notion that government is the engine of the economy. While we believe that its the people that are that. They then think that by increasing taxes, particularly on the "rich" and then transferring the funds via a gigantic and complex bureaucracy to the "poor" they magically stimulate the economy. Simple knowledge of economics refutes this socialist and idealistic notion.
My prefered tax method is a national sales tax.. no one is exempt. Then strip out all income and payroll taxes. This, of course, would have democrats and some republicans(john mcaine) howling in pain.

Answer 3

Check the facts. From several independent sources.

The economy has been more or less stable for the past 15 years, regardless of who has been in office. But any slight increase in the economy has had no significant impact on available government funds.

The only way the government is supporting its current budget is through massive deficit spending, and increasing the national debt to ridiculous levels.

Democrats (not all liberals), support raising taxes to pay for government programs, rather than deficit spending that increase the national debt (and annual interest payments) beyond any rational ability to pay.

Personally, the better solution would be to reduce spending. But of the choices, but the two choices being offered by the current major parties are deficit spending or higher taxes. So, either we pay now, or we pay later.

Answer 4

Because most liberals don't know that that even happened. They don't search for the truth, they search for whatever news justifies their preconcieved notions. I know this because I used to be a liberal. I voted for John Kerry inn 2004...it's THAT recent.

I would have NEVER heard that those tax cuts increased revenues...they aren't reporting it on CNN and it's not something that fits the "I hate Bush" storyline, so I'd never had heard of it.

Answer 5

Liberals will use any weapon to try to unseat republicans. It's easy to convince people with little economic savvy that tax cuts hurt poor people, even though the opposite is true.
The other sad fact is that with increased revenues, it's impossible to keep politicians hands out of it, and spending always goes up.

Answer 6

The left is against tax cuts because they want us to live in misery. That way we'll turn to government for salvation. Then they will have power over us. You are right, less taxes create more revenue. Simple.

Answer 7

I agree, If you ask me the best tax cut for EVERYONE would be a flat rate sales tax across the board so every one (legal or illegal) will be taxed the same percentage. It would be based on what the spend instead of what they make!

Answer 8

damnocrats oppose anything the republicans do. I believe if the republicans handed the white house and congressover to the damnocrats, they would not take it 1. because the republicans gave it to them and 2. they are idiots!!!

Answer 9

Because selling my children and grandchildren to China a communist country is wrong. Deficit spending is a republican thing when you are addicted to spending money you don't have and may not get.

Answer 10

Cuz they hate any and all freedom.