WHy are republicans afraid of higher taxes?

Question

And not afraid of increased spending? Doesn't fiscal responsibility call for conservative spending to offset lower taxes? Seems to me that if you are afraid of paying big tax bills in the future, you wouldn't vote republican?

nobody getting the point of the question...

hey kitty star? Nobody understood your wuestion because it was vacuous and how no roots in politics, which is where you posted it. And, your caps lock is stuck...please turn it off and join us in a spirited debate. And next time, you could at least have as much respect for me as I have for you, and answer the question. Thanks.

I really don't need a lesson in economics, just a reconciliation between increased deficit and lower taxes. Please someone? Anyone?

Answer 1

Voters don't see the bill and have no idea how much interest is being charged on this debt. They are confused when Bush promises to reduce the deficit by 50% within a few years. They believe this means the entire national debt, not just the annual deficit.

Most of these Republicans are not the fiscal conservatives of yore in their personal lives or in the voting booth. They have second and third mortgages and 3 VISA cards. Deficit spending seems to work for them. They are told that Reagan proved that deficit spending was good for the economy and they believe it. They really aren't aware that the size of the federal government has increased, and they don't care. Being a Republican is more of an identity thing with them than a belief in consistent conservative principles.

Answer 2

Congress is spending WAY too much! They stink on immigration issues too. Many conservative voters are angry at the Republicans, but they seem to think the Democrats are even worse on these issues. If the Republicans lose, I think it will be because their base is demoralized. (Interesting that you asked another question - will being the "un-Republicans" be enough for the Democrats to win? It could be - especially because the Republican base is tired of being told their leaders are lacking, but at least are better than Democrats. I'd prefer to hear positives, not negatives.)

The theory on taxes is that if you lower them some and spur investment, the economy grows and you actually get more revenue. It's not a question of the pie going to different places, it's that the pie gets BIGGER! Tax revenues DID increase, and the economy is growing. So again, tax decreases can stimulate growth - paradoxical but true. The trick is finding the right point on the curve - obviously taxing 100% won't work, and 0% won't work either. There are also "social policy" rationales for tax policy - some people question whether "trickle down" economics really works, and don't like the idea anyway. But the fear is that higher taxes actually hurt the economy.

But I agree - again, spending is OUT OF CONTROL! If the Republicans lose it will be because they became addicted to pork.

Also, to be honest, I am self-employed and actually have to make the checks out to the taxman. I get depressed! But of course we all have to pay our fair share.

Also, some will say the deficit is RELATIVELY small as a percentage of GDP or of the economy, but it's still huge. And it will become a drag on the economy.

Sounds like the two plans we have, to the extent we have any, are to raise taxes and keep spending, or keep them low and keep spending maybe a little less. No one's thinking of the future that much, I fear.

PS I don't want to be accused of chatting, but greetings! Have a good day.

Answer 3

Tax revenues are at the highest in record because the taxes were lowered.

That encourages investment, driving up business profits, which are taxable at a higher rate than personal income. It also generates additional personal income as a result of interest income generated by the investments.

So raising taxes always has a negative impact on the investments in the market, which hurts the economy. Initially the raising of taxes on income reduces the tax revenues. (The guaranteed income goes up, but the unexpected income based on investment income goes down.) Higher taxes guarantee a certain level of revenues so more money can be budgeted, but the overall effect on the economy often leads to a deficit until the projected income can be adjusted downwards.

One effect of the current deficit spending was to increase the GDP by over 1 trillion dollars in about 18 months. So while the deficit increased, the time it was take to pay back that defict decreased.

But there needs to be tighter financial controls now because that type of growth is not going to be unlimited.

Answer 4

The theory of Supply Side Economics says that if you reduce the costs to do business (reduce regulatory costs, reduce taxes, etc) then capitalists will have more profits at the end of the day, which means they will have an incentive to invest in more business transactions thus creating more jobs and more revenue to the treasury (even though the tax rate is lower the base amount taxed is higher thus balancing out).

The costs of the additional spending, unfortunately, is still a hidden cost and can sadly be ignored until it becomes a current cost when of course there will be a whole new bunch of people in the country who will have to make the hard choices that we are pretending we do not have to make now.

This was the problem with Reaganomics, taxes were cut but spending in large part was not (it was, instead, merely redistributed and even increased), and in the end no one would assume responsibility, just as no one will assume responsibility now.

This is an example of how doing something halfway is worse than doing nothing at all.

Answer 5

They like it the way it is now .With working people paying all the taxes each year and them reaping the rewards for all the work that gets done .Everything in a business is working from a model developed from the start to pay off the capital investment in 1-5 years depending on the business .
The wages paid are based not on a negotiation but what people will be willing to work for in a given area given current workplace wages. Building a cadillac pays the same as building a aveo so working 8-10 hours a day on a 10,000 dollar aveo pays the same as working 8-10 hours a day working on a 70,000 dollar cadillac STS-v. Even though the profit is greater on the high end cadillac produced in fewer numbers the wages paid are the same .
The business model takes into account the cost of labor as part of the materials and plant opperations and costs to build and open a manufacturing operation .
It is hard for workers to get any wage increase without inflation and those that do get increased wages and benefits are the middle class ..
With so many companies outsourceing jobs and not re-investing in america because they have found a cheaper labor supply and the cost to build is lower in other parts of the world many of our good jobs have gone bye bye to be replaced with retail sales jobs that pay 80% less then workers use to make in america .
Now all this is good for investors who wil reap great profits from this plan .
American workers however will suffe as we are now .
Republicans do not work for a living .The money they have does all the work and they just reap the profits and call it work .!0 phone calls in the morning a round of golf Lunch and a few more calls and then a rub down at the club showered dressed and back to the office for 10 calls and then on to dinner each day .All this aid for by the profits generated of the money earned by workers .
WHy would a republican want things to change .

Answer 6

Higher taxes will stunt economic growth, cause a fall in the stock market, limit investment income, and probably cause a recession. Bush's tax cuts are chiefly responsible for the economic recovery following 2001. Actually the economy was in a downward trend when Clinton left office as the US economy had 0% rise in GDP that year. Since the tax cuts economic spending has increased dramatically and lowering the unemployment rate to a 28 year low of 4.6%. If you raise taxes and or take away the cap. gains reduction tax we lose all that and more.

Answer 7

It has nothing to do with fear and everything to do with a greater degree of confiscation of MY hard earned money (i.e., my property) by the government.

It is obvious that you do not understand that tax rates can be lowered while realizing increases in tax revenues. For example, tax receipts are up >10% since the "devastating" Bush Tax cuts "for the rich." However, that will never stop Dems from spreading misinformation to gullible people claiming that the tax cuts "cost" the government money and that is why we have the current deficits (what obvious hogwash).

Current deficits can be squarely blamed on the "out of control" levels of spending by Congress and the inability of Bush to wield the veto like a sword.

Dems use tax policy to get elected and to fan the flames of class warfare. They are incompetent when it comes to managing tax policy. If they harm the goose laying the golden eggs, everyone will pay.

They will never learn and are incapable of understanding how everyone can win. They only know the "Robin Hood" philosophy when it comes to tax policy.

So simple-minded and misguided.

Answer 8

I do think both parties need to be fiscally responsible and historically it will show, that the more your in debt, the slower the growth, or the more artificial growth. As of right now the typical family of 4 is in debt to the government $110,000 or so dollars and the public dept grows something like 1.6 BILLION per DAY, It just doesn't take a lot of common sense to figure out, if you throw a EXTRA $110,000 loan on a normal family of four, its WILL hurt there chances of getting ahead, The VERY rich will tell your that debt doesnt mean anything, but of course thats because the middle class will have to pay for it

Answer 9

you're appropriate it won't harm President Obama, or others together with his form of money or extra. Who will it harm the small corporation making the $250,000 mark he's the single which will ought to hold off hiring somebody. as a results of fact to hire somebody that earns $20.00 an hour will value the corporation approximately $36.00 appropriate now yet after the Healthcare is going by way of it somewhat is going to be approximately $40 8.00+ and with yet another tax boost, nicely i'm hoping it is your job that is going!

Answer 10

You're partially correct. Fiscal responsibility does, indeed, dictate conservative spending. However, you're generalizing when you lump all conservatives and/or Republicans in with the present Administration's fiscal policies.