whats fiscally responsible about running up massive debt while cutting taxes?

Question

notice the last three republican presidents have done this, and then they threaten voters with dems raising taxes at election time

if the voters hate to have taxes raised, why do they ignore the massive debt republicans create?

Answer 1

Because the corrupt repugs will just say...
Golly, we can just print up more money...
(Remember, we're dealing w/southerners here!)

Answer 2

Here's the theory -- by prudently cutting taxes, the economy will be stimulated. With economic growth will come increased income, increased production (which goes down to vendors,etc.). With the extra money, there will be more revenue to the government, even if the tax rate is lowered.

This is why, in periods of economic growth, the deficit almost always falls (revenues increase). Bill Clinton did NOT increase the tax rate; did NOT decrease federal spending, but balanced the budget because of economic growth.

Now, here's the rub. Democrats/liberals would say that tax cuts should go to the middle and lower class. They reason that, if you give these people an extra thousand dollars, they will spend it on "stuff." The people who make the "stuff" will hire more workers (to meet the demand), and buy more material to make the stuff (and so on).

Republicans think that the breaks should go to the wealthy and corporations. With the extra money, the businesses should invest in machinery, etc., thereby stimulating the economy.

Problem -- if factories and shops are not operating to capacity, there will NOT be investment in infrastructure. Further, the wealthy do not spend money they have, and the cuts do not go into the economy.

The wealthy use tax cuts for investment, primarily into the stock market. But remember, money invested in the stock market does NOT go to the companies. The money (except in the initial offering, which is statistically irrelevant tot he market), goes to the seller of the stock. It is simply trading dollars.

This is why, when R. Reagan tried the trickle-down theory, cut tax rates, and decreasd corporate taxes, the corporations found themselves with tons more cash. Did they invest in the infrastructure? No. Instead, they used the available money, leveraged it, and bought other companies (the largest period of mergers and acquisitions in history). The result was that many people (in the acquired companies) lost their jobs, a decrease in competition, and a stagnating economy by the end of the Reagan terms.

Hope this helps.

Answer 3

The degree to which you are uninformed is tough to measure. Why is it that Democrats can never grasp that tax policy does not work in an arithmetic manner. You can lower taxes and increase revenues (as has been the case following the "tax cuts for the rich"), and you can also raise taxes and experience losses in tax revenue. Dems lack the capacity to comprehend these simple facts, why is that?

Generally speaking, Congress is made up of two parties last time I checked, so your entire point is pretty much hogwash. You might try being informed next time before spouting your mindless and baseless rants.

You obviously need to study more. Stop embarrassing yourself.

Answer 4

Seems to me the tax and spin democrats of the 80's has become the repuglicans of the 00's Clinton left this country with a surplus, Bush changed that with his first tax cut for the very rich. Hey, middle class repuglicans, you got $20, don't spend it all in one place. The repuglican spin machine has them so brain washed that no matter what these politicians do, they rationalize it. Rush Limbaugh, Sean Hannity, Ann Coulter, are just tools. They spread the bull that these people believe in, and believe in it they do. Democrats are people that want to take away your guns, support murdering baby's, and are ***** lovers. Pounded in over and over until I almost believed it. But I have the ability to think for myself, I have seen the direction that this administration has taken and I do not like it. One of the most common answers is that Bush is doing better then Kerry. I wonder how the hell this could possibly be.

Answer 5

First, how do income taxes lower the national debt? Do you think they actually do? Do you know what money is and isn't? Do you know what Federal Reserve Notes are and how they differ from money? I think you need to educate yourself on the Federal Reserve and what it is and how and why it operates in utter secrecy. If you do this, you will see that the income tax is not only unlawfully applied to the average private citizen but is also unnecessary for anything except to place the people under Federal Jurisdiction and keep them intimidated..

Answer 6

What are you speaking approximately? we are doing great things with that money, like construction million dollar bridges to nowhere on a similar time as the victims of Katrina interior the sourthern area of america are nonetheless residing in tents and trailors waiting for the help that they have got been promised! it's time to awaken human beings and comprehend that in simple terms through fact you're a conservative does not mean you may desire to back an regime of idiots that dont have anybodys extra advantageous interst at heart yet their own......and the remark with regard to the tax cuts.....PUHHHHLEEEZEEE the traditional middle classification relatives or working undesirable relatives spent that little bit of not something money on gas final week! Its silly comments like the only with regard to the tax cuts that shows us why we are in plenty worry......Idiots voted the jerks back into workplace to end destroying the country!

Answer 7

2 comments.

First, if the average American is in debt up to their eyeballs, how hypocritical is it to hold their government to a higher standard? The average American doesn't understand borrowing, but their government must or it's unbearable??

Second, if our government didn't "pick up the tab" for the past 3 years, our economy would not have provided 6 million new jobs for its citizens. The defecit is being re-figured lower and lower each time. The trickle down theory works...patience is needed to see the results. Americans also want instant gratification, which is hard to appeal with this economic theory.

Answer 8

And it's not just the debt, it's also the compounding interest on the debt. We are approaching $9 trillion on the federal debt. Foreign countries own about 35-40% of our government's public debt.

Answer 9

It's because the last three republican presidents are neo-cons. You see, democrats WOULD raise taxes and ruin the economy... but the neoconservatives do it too. As a real conservative these days you pretty much have to side with libertarians.

Answer 10

Nothing. It is embarrassing that the Republican Congress didn't have the guts to cut programs to pay for the tax cuts.

Answer 11

Two different issues Einstein.

Yes, the voters should punish the pubs for running up the debt.

Yes, the voters should thank the pubs for lowering taxes of the middle class.