What is your belief on tax cuts?

Question

Do you believe tax cuts from the beginning of Bush's administration are primarily for the rich or not? what are you throughts about that?

Yes I know the facts and we can talk about those later.

Answer 1

i saw someone else post this and i thought it was good


Economics are hard to understand, so here is a simple explanation.

THE SIMPLIFIED EXPLANATION OF THE TAX STRUCTURE

Bar Stool Economics
Suppose that every day, ten men go out for a couple of beers and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes according to our current tax structure, it
would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until on day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily bar bill by $20."Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same percentage of total of what he had been paying, and he proceeded to work out the amounts each should pay.

And so:
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 in stead of $59 (16% savings).

Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

"I only got a dollar out of the $20,"declared the sixth man. He pointed to the tenth man," but he got $10!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than I!"

"That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two"

"The rich get all the breaks!"

"Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!"

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him.

But when it came time to pay the bill, they discovered something important. They didn't have enough money among them all for even half of the bill!

And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier, or not reinvest in the community.

For those who understand, no explanation is needed. For those who do not understand, no explanation is possible.


David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia

Answer 2

Even if you think the tax cuts are for only the rich that would still be good for everyone.

Here's how. If you give the rich more money they don't sit on it they invest it. So in other words you give the owner of a chain of stores some tax cuts he isn't going to sit on that money and give the dems time to steal it from him, he'll grow his business. He'll do what rich people do, try to get richer and in the process he'll create more jobs and help drive the economy.

Bottom line- tax cuts for anyone are good for everyone!!!!

Answer 3

I like tax cuts when they benefit me, directly, of course, and they're generally good for the economy, since they encourage whichever economic activity is being taxed less after the cut. Obviously, some tax cuts might encourage an undesireable economic activity - the sale of tobacco, for instance, is taxed pretty heavily because it's considered undesireable.

The tax cuts on dividends, for instance, haven't saved me a whole lot directly, but they've increased the impetus for investment, which is a good thing for the economy in the long run. My company has benefitted from it, and I've stayed employed. Can't complain about that.

Answer 4

I got one and I am certainly not rich. my ex-wife actually went from not paying any taxes to getting a check. the government actually paid her that one year, I can't remember the specifics.

Answer 5

"Bush gazed around the diamond-studded $800-a-plate crowd and commented on the wealth on display.

"This is an impressive crowd - the haves and the have-mores," quipped the GOP standard-bearer. "Some people call you the elites; I call you my base." "

You decide.

Answer 6

Of course they benefitted everyone - at least those who paid taxes, duh. I certainly don't want to see them reversed and have to pay more taxes.