Originally Posted by cmitch
So, you disagree that tax cuts stimulate the economy resulting in an increase in gross tax receipts? Therefore, according to what you say, tax cuts have to be 'afforded'. The recent tax cuts were afforded by an increase in tax revenues. I know it is difficult for you to comprehend, but it is a fact. They did not take money out of mine or yours grandchildren's pockets for the tax cuts. What is doing that is run away government spending that is caused by both parties- not just the republicans. They are all hogs at the trough, slurping up all the money they can for their districts.
It is my money they are not taking with these tax cuts. It's not 'borrowed'. But you must think all our money belongs to the government first.
Yes it is borrowed. You and I, and our children will continue to PAY off the debt associated with the deficits that are associated with the tax cuts. Right now the cost of the National Debt is $600B per year INTEREST ONLY. So Bush signed a credit card slip that gave all of us a tax cut but did not show us the bill or the interest on that bill.
Did the tax cuts stimulate the economy? MAYBE. First you have to decide what defines a stimulated economy. The INTERNATIONAL ECONOMY is very stimulated, and our Stock Market gains are one result, due in part to a devalued dollar AND international investment by US Corps [offshoring of manufacturing and jobs]. The tax cuts had nothing to do with that.
Did the tax cuts stimulate the consumer spending rally? MAYBE. But you also have to look at the dramatic increase in CONSUMER CREDIT that has occurred during the same time. Which caused the stimulation, the tax credits or the spending that jacked up credit lines.
For the people who got the tax cuts the actual amount of monies received might have covered inflation for the year, if that. So if you spent the SAME money as the year before there would be no real stimulation of the economy, just status quo. On the other hand, you would not need to spend less and that is good.
Tax cuts work very well IF a government does not also deficit spend [much like your personal budget works well if you put money in savings at 7.5% as long as you don't borrow at 15% at the same time]. In the past 6 years this government has provided a tax break to SOME but provided a tax burden for ALL with the interest and principle that paid for the tax cut. Is that stimulation?