Are tax cuts, tax breaks, the republican answer to every problem?

Question

Guiliani just proposed even more tax cuts at a time when we are fighting a war, and we are already piling up record deficits that our kids (including those fighting this stupid war) will have to pay for. The worst part is - most of the tax cuts are for the ones who don't need it. And they know that tax cuts dont usually work. Even Reagan realized he had to raise taxes in his second term. Bush Sr. realized he had to raise taxes. Now Bush Jr. is claiming a great economy because of his tax cuts. Yet, we are doing worse than most of the rest of the world. Our dollar keeps shrinking against other countries. Incomes for the poor and middle class have gone down. And the stock market has had its worst growth performance in U.S. history.

Happy Mommy - if tax cuts work, why did Reagan and Bush Sr. RAISE taxes? And why did we have the best economy in U.S. history during Clinton administration (after 3 successive tax increases under Reagan, Bush, Clinton)?

Oh and yes I took economics in college. And I have a Bachelors and Masters degree.

Answer 1

Tax breaks get votes, they keep cutting them and running up the debt, until a democrat gets into office and has to repay them.
I would like to see someone prove giving tax breaks to companies that do most of their labor overseas, actually improves our economy.

all these tax breaks that supposedly improves our economy always come at the same time as increased government spending. I don't know what econ classes the rest of these people took, but the one i took, taught that cash flow the the most important factor for improving economical conditions.

Answer 2

Tax breaks AND cutting spending is the best way to tickle the economy's Fancy. This is how it works. Lets say you own 'Bob's general store', now you can move to a country with 10% taxes, or you can move to a country with 50% taxes. Where will you choose to go to? You go to the country with the lowest taxes of course. Now, why is this important? Because Bob's General store, will provide 5,000 jobs to the country it sets up in. This allows the population of that country, to start paying taxes, because they make money. This has been proven, to decrease unemployment, increase tax revenues, increase a family's capita average, reduce poverty, increase productivity, and increase competition- thus lowering prices for goods. Now, this must be cooped with cutting spending, or the Bush Economy will happen (good, then everything falls down a few years later) Why stop spending? because the poorer a government is, the less trust it's currency will have- do the increase worry of a economic collapse. Currency is a trust system, the currency is worth something- as long as the government of the country remains strong economically. So the richer a country is, and more economically stable- the higher the value of it's currency will be. This can be compared to the stock market (actually its a perfect example) Will you buy stock from Bob's General store (who has expanded all across America, and has millions of customers, and thousands of employees.) Or will you buy from Fred's General store? (Witch has 30 stores, with prices that exceed Bob's store, with less selection) You will buy Bob's stocks because you trust Bob to continue to expand, and maintain a stable company- as apposed to Fred who is having economic troubles, and may shut down.

Answer 3

You’re so off the mark in so many ways, it’s hard to know where to begin. First, spending on unnecessary entitlements (giving money to people who don’t morally have it coming) is where the vast majority of our spending goes. Being a lib, you wouldn’t know that, because your news sources are strictly MSM, who don’t tell the truth, because they like that kind of spending.

Tax cuts do help the whole spectrum of consumers, because when their taxes are cut, they spend more, which increases the wealth, which increases jobs and thus more wealth. When there are more jobs, the tax base is increased, which increases the federal reserve, which means there’s more money for the government to spend on essentials, LIKE NATIONAL DEFENSE!

Reagan never increased taxes, Bush the elder did, and that’s why he wasn’t re-elected in ’92.

It is insane to believe our economy is anything but booming, and it is absolutely because of tax cuts. That’s what happens with capitalism. When the Dems and the MSM say otherwise, THEY ARE LYING. They lie because they hate capitalism, and they want to establish a socialist state.

What the heck sources are you getting this garbage from? The stock market hit 14,000 pts. In June, the HIGHEST it’s ever been, and the downward adjustment in the past month has been normal, and has NOT affected the economy. Income measurements for categorizing the “poor” (a huge percentage of whom are “poor” because they choose to be so) and middle class have been adjusted so that the Dems and MSM can have a B.S. statistic to cite when they lie about the economy.

More people have more money and possessions than ever, and that number grows daily. That’s what galls the Dems and the MSM – THEY HATE CAPITALISM AND WANT REDISTRIBUTIONISM, WHICH MEANS NO ONE WILL HAVE ANYTHING MORE THAN ANYONE ELSE.

That means everyone will have nothing, the way it was in the USSR, and Hillary will then be able to control you any way she wants.


ADDITL. You took economics at Karl Marx University, if you really did take economics in college. Wait, with all the pinko professors around, you asborbed stupidity through osmosis.

The economy did well under Clinton because the Reps took over the House and Senate in '94 and passed tax cut bills, which Clinton was forced to sign, after he vetoed the cuts three times. Surely you remember when the Dems were reassuring their lib consituency that the tax cuts will be "fixed" later.

You are a dedicated liberal ideologue - a true fanatic - and you make an absolute fool of yourself.

Answer 4

Yes although they have now added the empty remember 9-11 rhetoric and be afraid because only we can protect you from the terrorists. It is truly amazing how so many people can be so very wrong. Oh and a small point few like to acknowledge the taxes on our income go to nothing but pay the interest we (the US) owe the Federal Reserve for the money they lend to us. A variety of other taxes make up for every other expense.

Answer 5

I think the issue is what kind of tax cuts. Warren Buffett admits he doesn't pay enough in taxes.

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Mr. Buffett compiled a data sheet of the men and women who work in his office. He had each of them make a fraction; the numerator was how much they paid in federal income tax and in payroll taxes for Social Security and Medicare, and the denominator was their taxable income. The people in his office were mostly secretaries and clerks, though not all.

It turned out that Mr. Buffett, with immense income from dividends and capital gains, paid far, far less as a fraction of his income than the secretaries or the clerks or anyone else in his office. Further, in conversation it came up that Mr. Buffett doesn’t use any tax planning at all. He just pays as the Internal Revenue Code requires. “How can this be fair?” he asked of how little he pays relative to his employees. “How can this be right?”

Even though I agreed with him, I warned that whenever someone tried to raise the issue, he or she was accused of fomenting class warfare.

“There’s class warfare, all right,” Mr. Buffett said, “but it’s my class, the rich class, that’s making war, and we’re winning.”

http://www.nytimes.com/2006/11/26/business/yourmoney/26every.html?ex=1322197200&en=0cf857b8cb918674&ei=5088&partner=rssnyt&emc=rss

It's about greed. It's not about taxing the rich who people consider at the start of six figures, but the rich that make seven figures. Corporations who pay so little in tax they profit in the billions. None of that is passed on to the people who work for them and are a part of that success. It's not socialism, I don't want everyone to make the same thing, but the difference between the CEO's in the country and the lowest paid person have been growing more and more for the past few years. It is not fair. Everyone should be making more money, then they can spend more and save more.

Answer 6

Well they certainly boost the economy and increase government revenues. Tax cuts have worked that way every time they are enacted.

Edit: When you raise taxes corporations do not pay more they raise prices, cut services, move to a different country, and/or lay off workers. The lowest on the ladder are the ones hurt, not the idle rich.

Answer 7

I am a Libertarian so you can't say I am either rep or dem. Taxing for the sake of raising revenue is wrong and dems have a history of doing that. It is one of the major difference between rep and dem.

Answer 8

That and military action.The Republican party needs to rethink what it stands for the hollow lower taxes and be afraid rhetoric will no longer work on the American people;You can't fool all the people all the time.

Answer 9

Actually because of the tax cuts the deficit is shrinking much ahead of schedule. So tax cuts do indeed solve more problems than throwing money away on social programs that only grow and grow and produce less and less productive anything.

Answer 10

Not at all. The Republican answer to everything is twofold:

1) tax cuts fo r the rich, spend as much as you want, and leave the bills to our children.

2) If somebody doesn't do what you want, start shooting at them.