What exactly was Bush's reason for giving the tax cut to the rich and how does it benefit the middle/low class

Question

How does this tax cut help say a teacher, policeman, or a store clerk at Target? Enlighten me...

Answer 1

Do you wantthe reason or the propaganda? Here's both, anyway:

Propaganda: When the rich get a tax cut, they invest the money in new capital, thus creating new jobs. That way everyone benefits--the rich get a free handout, and the lower orders work more, thereby increasing business profits, making the rich even more money. (Of course, there's no requirement the rich have to invest the money creating jobs for Americans--they can invest it anywhere--like india and China--or put it in an offshore account--or whatever)

(I did strip away some of the verbal window dressing!)

The real reason: political payoff to the fat cats that put him in the White House.

Answer 2

1. The "RICH" already pay most of the taxes in this country so logically it makes sense to reduce their burden 1st.
2. As a Fire Inspector I also benefit from the tax cuts because they reduce my burden thus allowing me to keep more of what I earn which allows me to make my mortgage payment, property tax payments, new car payment etc... all of which benefit teachers, fellow firefighters, police officers and the store clerk at Target or Walmart.
3. By reducing the tax burden on the "Rich" (what ever that means) you free up money that is then used to create jobs by reinvestment (ever seen a poor person create jobs?)
4. The "Poor" use more taxpayer provided services than the "rich" ergo it's logical to expect them to help pay their own way.
5. Why do people ask these STUPID questions when JFK did the same thing in the 1960's and the entire nation benefited from tax cuts ?
6. No I'm not "Rich" by ANY definition you care to use. I grew up in the poorest County in California and had to WORK my way up to where I can afford a house and a new car once every 5 years or so.

Answer 3

They do primarily favor the wealthy, in fact according to the republicans own estimate allowing the tax cuts to expire will increase taxes overall by 3 trillion dollars over the next 10 years - and they also point out that 800 billion of that increase will be for the middle and lower class. Or in other words according to them 73 percent of Bush's tax cuts have no impact on lower middle class citizens. So its not to say the cuts don't impact middle class tax payers at all, just in a very small way and heavily favoring roughly 5 percent of the US Population.

Answer 4

Perspective: 5% of Americans own or "control" (through family trusts) 90% of the wealth of this nation. "W"'s tax break was on capital gains or the money made by selling stocks, bonds, or the family home and not buying a more expensive one within 2 years.

Republican argument: More money to invest in the economy or to reinvest in your IRA or 401k. And since most people have at least one stock mutual fund, each will benefit.

Democrat argument. The richest 5% own 90% of the stocks and bonds so will reap 90% of the tax sevings.

Warren Buffett Pres and CEO of Berkshire Hathaway declared it "stupid" and he makes his money buying and selling stock.

Money never planted or harvested a crop. It never built a house or worked on an assembly line. Money has purchases the tools, including technology, to make the work more efficient. So why do the owners of money feel they are entitled to the wealth created by labor???

Capital and Labor have a symbiotic relationship. One cannot survive long without the other. So why are Labor Unions so hated when they only want a fairer division of the wealth created by the skills of labor?

Answer 5

It doesn't. It is stealing from the poor to give to the rich.

David Stockman and Ronald Reagan proved the "trickle down theory" doesn't work. It never trickles down, that is why they called it "Voodoo Economics"!

How anyone can argue that you steal from the poor to give to the rich so some may trickle back down to whom you stole it from I haven't a clue! But most of you buy it! It doesn't even make sense!

The divide between the rich and the majority;50% of American families make $25,000 and less and almost the same percentage are homeless...but work full-time; is growing and our jobs are disappearing!

The tax cuts do nothing for those you mentioned. The fall-out, with 3 1/2 Trillion of additional debt Bush has run up, is going to help drive them into poverty!

How anyone can believe that employers, who make a lot of money, can expect that it is "the American way" to pay people so little that they can't even live on it!

I don't understand those who are, say, anti health care, but are pro-business for health care. Well actually I do as the head of Anthem makes over 2 Million a year and was given a 12 Million dollar Bonus, and the stockholders made a lot of money! The only people who suffered are those who had to pay for it, and it wasn't the rich! Have any Idea how many HMO's there are?

Answer 6

Everybody talks about the weather, but it is quite unpredictable. Nonetheless opinions run rampant on what may happen 50 years from now, and most of these opinions are based on a limited understanding of a very complex issue.
Similarly, everyone has an opinion on taxes, the economy, the definition of rich, etc. Economics is called the "Dismal Science" partly because it is dense and difficult to understand, subject to unprovable projections, malleable statistics, and because most opinions are based on partial information, personal experience (which is limited and not necessarily indicative of the total reality), and subject to being manipulated for purposes other than finding the truth. Like climate change, economic reality can be in the eye of the beholder, with truth or reason being sacrificed on an alter of hidden agendas. I suggest that anyone espousing an opinion on taxes find reliable data before passing on that opinion. Find out who pays over 90% of the taxes collected by the IRS. Find out who pays no tax to the IRS. Find solid data, and don't rely on lies, damned lies, and statistics from someone who may not have finding the truth as their highest goal. If nothing else, this exercise will certainly cure your insomnia.

Answer 7

The tax cut is for all tax payers. Because the cut is the same percentage for middle income earners as it is for the wealthy, Democrats label it as a tax cut for the rich. The overall reason tax cuts help the economy and lower and middle income workers is because it puts more money into the economy, generating higher salaries and more jobs.

Answer 8

The stated benefit derives from Reagan's discredited 'trickle down economics'.

If you let rich people keep more of their money they will make prudent investments in domestic production. However, most do not invest this way. Instead the buy imported luxury goods and 2nd, 3rd and 4th homes in foreign countries.

President Kennedy cut taxes for rich people that DID produce the desired increases in domestic investment because we lived in a highly protected economy that made today's rich spending habits impractical.

Answer 9

It doesn't. Your tax cut is easily gobbled up by rising gas prices, rising mortgage payments, credit card payments, food price increases, state and local taxes that increase due to unfunded mandates, etc. Bush tax cuts only benefited those who were well off, as they were designed to do.

Perhaps fiscally conservative Americans will see from the Bush amnesty plan that they WILL be sold out. Professional? How about the Bush H1B visa plan? That is just a start.

Answer 10

so they can make more money, and thus create a trickle down effect, they pay you $5 to clean their car, or mow their lawn.
as for the teacher and policeman, the teacher gets assigned to an inner city school where he or she can spend her own money on school supplies, the policeman can make some extra money after work to protect their premises, and the clerk at target gets laid off because the rich shop in europe.