Why or how do Democrats reason that by raising taxes it will improve the economy?

Question

Not deficit, economy.

Answer 1

Obviously, many of the people who answered this question aren't Tax Preparers or they would know from experience instead of "heresay" that in America today, the poor pay no taxes. If they have children, they pay no taxes and get a fat check from the Government. The middle class and the wealthy pay ALL the taxes, especially the wealthy. You can't give a tax REFUND to people who pay NO taxes. The very definition of the word "refund" means to give back. You can't give back to people who never gave in the first place. You can only give back to someone who gave something. Republicans tend to distrust big government and think all the government we need is just enough to protect our shores, and take care of the old, the very young, and the helpless. Democrats tend to think we, the populus, are too stupid to take care of ourselves and we need big government to tell us what to do, and that takes lots of tax money.

Answer 2

Because as the deficit grows, it will further drag down the economy. The government must borrow to fund the deficit and that diverts funds that could be used for a myriad of programs that would benefit all Americans. This drag also impacts interest rates since the government must raise the rate it pays to attract investors. As interest rates climb (haven't you noticed this yet??) the cost of borrowing for business goes up as well. This reduces profits and drags down economic growth.

The deficit spending by the current administration is the worst in the history of the nation. Massive tax breaks were enacted for the ultra-wealthy with the remaining burden falling squarely on the Middle Class. I'm in the upper 5-figure salary region, and my tax "break" was enough to buy a couple of six-packs a month. Whoopie doo! The increase in mortgage interest rates would MORE than wipe that out if I were foolish enough to re-finance my current note.

The Dems are proposing to trash the tax breaks for the wealthy and give some REAL relief to the Middle Class. This will help to reduce the deficit spending idiocy of the Bush administration and will free up funds as the need to pay interest on the national debt recedes. You're probably blissfully unwarare of the fact that the biggest single expense of the Federal government isn't social welfare programs or national defense, it's DEBT SERVICE for the national debt. Considering that a chunk of that debt is held by foreign interests, that's money that goes straight out of the country. How much sense does THAT make?

The idiot in the White House and his Republican cronies are the ONLY ones in the history of the nation to enact tax cuts during WARTIME! Where are their heads? In a dark and foul-smelling place, IMHO.

Answer 3

Well, reason is not compatible with leftist philosophy. Lets call it rationalization. You first have to accept several erroneous assumptions on how things actually work. First being is all things good flow from the government. Second government spending produces growth and is efficient, while private spending is wasteful and non productive.

Then the idea emerges that government spending is like priming the well. A little bit of well directed spending produces an economic benefit several times the amount spent. So that with that scheme in mind the higher the taxes the more government spending the faster the economy goes.

Answer 4

Only the "Rich" Pay Taxes

The Top 50% of wage earners pay 96.54% of All Income Taxes
The Top 1% Pay More Than a Third: 34.27%
83.88% of federal income taxes are paid by the top 25% of all income earners.
Democrats define the word "Rich" to mean anyone that pays income tax. They have used the old "Tax cuts for the rich" line in every election for the last 30+ years.
Dem's reason that it is not your money anyway and they can spend it much wiser then a simpleton such as yourself. After all, we have seen time and time again that once government gets involved in something it becomes far more efficient and cheaper than anything that private sector could ever dream possible.

Answer 5

Democrats don't reason that way at all . . . they reason that a fairer tax structure . . . which would repeal many of the ridiculous tax cuts given to the wealthiest 10% of Americans over the past several years and provide more services and lower taxes for the lower and middle classes . . . would improve the economy . . . and cut the deficit. Also believe in cutting so-called "corporate welfare," which rewards American corporations that send jobs overseas and put headquarters in Bermuda and the Cayman Islands to avoid U.S. taxes.

Answer 6

Democrats want to lower taxes for common America, and raise the taxes for richest portion of America. It is a common misconception that Democrats want to tax as much as possible. George W. Bush on the other hand raised taxes on the lower and middle classes and lowered taxes for the top 2% wealthiest Americans.

Answer 7

Gee it's really quite simple, they always raise the taxes when they are in office, and if you do your research, you will find that the economy always ends up really good when they are in office.
The republicans give tax breaks and the economy always ends up in the toilet when they are in office.
Maybe they are on to something?

Answer 8

They say the taxes will only be on the rich and they will provide gimme programs with the money. The money usually doesn't get past one of the politician's self serving schemes.

Answer 9

Then they will have more funds to give to people that don't work so they can afford to live like us people that do work. Living on welfare isn't as cheap as it used to be. Of course there won't be anyone working at fast food, janitorial, landscaping, or farm help. Oh well, the cost of progress. Think about it.

Answer 10

Maybe because the better police and fire protection we have the more likely business will want to come to a town.