Quote:
Originally Posted by goober
OK, if spending was the issue why didn't anyone do anything about it?
That's twice now we've had huge tax cuts, followed by huge spending increases, which kind of destroys the argument that tax cuts force the government to live within it's means.
To me, it seems that raising taxes to balance the budget would force spending cuts, because then politicians would think twice about spending if they actually had to present the voters the bill.
And when the government is running a deficit, tax cuts or tax increases for the wealthy have little effect on the economy, because for every dollar in reduced taxes that is now available for investment, there is a dollar borrowed that is no longer available for investment, you could even make the argument that tax increases on the wealthy stimulate the economy, because reducing the deficit lowers long term interest rates, which promotes long term investment far more effectively than tax cuts, at least that's the way it seems to work in real life.
Clinton raised taxes on the wealthy, the deficit went away, and interest rates fell, and the economy boomed, Bush cut taxes for the wealthy and well, here we are in an economic crisis.
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Wouldn't it also make sense to try & obtain as much tax revenue as possible? Obama's plan of raising capital gains tax to 28% lowers tax revenue. That's the point of this thread. And it hurts Americans saving for college & retirement, along with seniors who depend on dividends to make ends meet. In other words, it's a
lose-lose situation.
It appears you didn't watch the debate last night. Since you brought up Bill Clinton it was noted in the debate that when Bill Clinton lowered capital gains tax to 20%, they actually increased capital gains tax revenue. This has been proven on two different occasions.
Yes, the republicans have gone against their base, by spending like drunken sailors. They were in charge for at least 6 years & blew it. If they would have held to their promise of lowering spending, they wouldn't have gotten slaughtered in 2006.
But, you don't kill the golden goose (the American people) -- the money makers by taxing them to death. It is extremely detremential to job growth & the overall economy. Americans who have less income because of higher taxes, don't spend their money, which expendable money in American pockets keeps this economy rolling on, while also increasing tax revenues.