I wondered what the reason for tax cuts if are government is always saying we are trying to lower budget?

Question

I guess my goal would be more foreign policy and my stradegy
would be to try to keep out of other country's business for starters.
Anybody have any other feeling's on how to keep Americans
prices from going so high?

Answer 1

You have it right about staying out of other country's politics and they need to stay out of urs.

The liberals always claim the benefits of a good economy and reduced deficit while they are in office. What is really happening is that the economy is allowed to grow when taxes are lowered during a republican regime. However, it takes time to see the actual benefit, it doesn't happen overnight. Once the taxes get increased to create more social programs the economy starts to deteriorate again so by time the democrat leaves office we're starting to sink into a recession again. Clinton and Carter's presidencies both exemplify that.

If taxes are lowered more jobs are created providing more income to more pople and reducing unemployment. That boosts the economy and increases the tax base by having more people paying less. The concept of taxing the highest earners may feel good, like Robin Hood or something. However, 50% of that tax money is wasted by the government and taken out of circulation. The rest is handed out to those who are unemployed. The net result is that unemployment is increased but because they are getting handouts the poorest people mistakenly believe they are being helped. Had the money been used to create jobs more people would be employed and fewer would need assitance.

I guess its the difference between feel good right now politics that serves to buy votes from poor people versus long term gains from reinvestment of economic gains.

Answer 2

You really need to understand economics.

1) Lower taxes means more money in your pocket, which you in turn spend on goods and services, which get taxed, which means more tax revenue for the government. Has been proven many times.

2) What does foreign policy have to do with our budget?

3) Price has nothing to do with how much you get taxed.

Do you think that the US government is responsible for dictating how the economy operates?

Answer 3

After reading your question and the first two answers I'd have to say "You've been told". There is much for you to learn. As they have already stated: lower taxes=higher tax revenues for the government. Considering what our country has been dealing with, it is amazing how good our economy is doing. Unemployment is way down, home ownership is way up, people are earning and spending just like they are supposed to do.

Answer 4

Inflation has been super low during Bush's administration. Gas prices are always going to bounce, but prices have been very moderate. This is a period of great economic growth, what prices have you seen going sky high?
Tax cuts encourage the economy because more money means more people spend and buy consumer goods.
Guess we're not going to see you as Secretary of the Treasury anytime soon?

Answer 5

The reason for tax cuts is a preparation for election so that the people will elect the members of the party who authored the tax cuts.

Answer 6

well if we dont have to pay so much in. that gives us more money. prices go up on goods too. what do you want? to save it for christ sakes? better get on board and figure it out. other countries business is what keeps us on top. or we'd be like....just stagnant. not so great dude. better not buy so much and save your money tho for when we hit the bottom.