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Originally Posted by Jim in CT
I have a million times. We all know it's not true.
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Then I'd expect you to be posting a million quotes. To day I've not seen you post one.
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You're ignoring the stimulative nature of tax cuts, and the contractive nature of tax increases, aren't you?
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No, I'm simply looking at the balance sheet for this fiscal year. The tax cuts are going to expire, this will cause a lack in revenues at a time we're running a large deficit. It's basic math right?
Now certainly when earnings are up it's possible to see an uptick in net revenues with lower rates, but there is no magic formula that says when taxes go down the economy is
always stimulated.
You could also argue that tax incentives for lower brackets are much more likely to be pushed back into the economy than those at the top who will just park it long-term. It's not like we're talking about a massive restructuring of the tax code that could cause a shift in how people invest, this is just an increase back to about where things were 10 years ago when I seem to remember the economy doing quite well. Besides, businesses (bigger) have tons of cash right now...a lack of money at the top isn't the problem with the economy.
Simply put, right now we have a very serious debt problem. Any potential gain from stimulative effects has to be balanced against the increasing costs of servicing that debt.
I think the fair question for Obama would be, if you're going to argue the rich need to pay more because we can't afford it, why isn't Congress doing more to cut expenses?
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That's easy...REPUBLICANS. The GOP wants to get rid of the fat, the Democrats want to add more fat. I agree with you 100 percent that we need to identify things that can be cut. When the GOP talks about cuts, the Democrats accuse them of not caring about poor people. That's the problem.
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Aside from some making election cycle hay, I've not heard any serious proposals to cut costs. Most of the GOP (elected, not punditry) are just as glued to the fat they can suck for their own interests as the Democrats.
It's going to be fun watching the incoming Republicans play with the old guard.
-spence