The wealthy have been getting these Bush tax cuts for over 10 years now and still no jobs. Why are they continuing this lie.
republicans believe in this trickle down nonsense, i heard about it with Reagen…. how long do we gotta wait for the damn trickle? it’s nonsense. they just want more and more money, they got enough, damn. the rich just want more, its a plutocracy. Obama will help them adjust.
The lie – is the TAX. No amount of taxes from the rich would even pay 1% of what’s owed. Even if you took 100% – it would never come close to paying off the debt.
Get your fax right – before your mouth catches flies!
This is an example of how you been played by the people you have trusted for your information. After implementation of the Tax Relief and Reconciliation Act of 2003 (part 2 of the Bush Tax cuts), unemployment dropped from 6.3% and kept on dropping into the 1st quarter of 2007 to a low of 4.4%. The increase of revenue this generated made each of his 2nd term yearly deficits step down significantly (to a low of $200 billion in that same year), on track with the projection of a balanced budget in 2010. This, when Bush spending did not decrease. All of Bush’s gains were blown out of the water by the mortgage meltdown, unrelated to the tax cuts.
The reason why the cuts are not creating jobs after the recession (over in July 2009) is due to the great negative forces that are countering the positive forces of the tax cuts. These negative forces include the machine-gun of oppressive regulatory red-tape, spewing out of Washington. Employers (big and small) have been scrambling for cover until it stops. Also threats of tax-hikes, including the high-end income tax has been hanging like the Sword of Damocles over the head of these businesses. The Estate Tax, threats of Cap & Trade, energy policy that is obsessed with “green” and not fossil fuel energy, etc., are all contributing to the lack of job creation.
The tax cuts were never put in place just a a present for the “wealthy”. This is class warfare clap-trap Liberals simply WANT to believe thus, they never are listening when the truth is given. The purpose of the tax cuts was to spur the economy. It is an application of supply-side economics, meaning freeing up money of suppliers of goods and services so they can produce more. At that time, 65% of all small business and their owners were effected by the high-end tax cuts, now it’s 55%. Regardless what Obama tries to tell people, supply-side economics has been successful in reviving the economy, even turning it into a booming one, EVERY TIME it’s been employed for almost 100 years!
Here is a history of other supply side economics at work. Warren Harding and Calvin Coolidge cut the highest income tax rate from 70% to 29% and cut government spending 50%. The result: the Roaring 20’s and unemployment of less than 2%. JFK’s posthumously passed income tax cuts (90% to 50%) also had a good effect on the economy, creating the revenues for LBJ’s Great Society spending.
Reagan cut the highest income tax rate from 70% (again) to 28%, plus 15% across-the-board tax cuts. He also had the courage to tough out reigning in the money supply that was causing the crippling stagflation. Both of these policies created a new, a solid foundation for the country that supported a 17 year booming economy. Revenues during this time also doubled from $500 billion to $1 trillion. Unemployment dropped from 10.4% to 5%.
Clinton cut the Capital Gains Tax. The already good economy went into overdrive. We already cover Bush. Internationally, Margaret Thatcher lowered the highest tax rate from a stifling 95% to mid-thirties, creating results similar to Reagan’s economy. Post Soviet Russia’s economy was a shambles for years until Putin lowered the corporate tax to 13%. That is when it started to grow into a powerhouse. China flat out eliminated its capital gains tax to spur investment. Now, everyone wants to invest there and there is capital for all sorts of business. The economy is growing at 7.6% (it’s been as high as 13%).
Even supply side (trickle-down) spending works as FDR found out. When he came into office, he proceeded on a Progressive socioeconomic spending/restructuring (fundamental change) campaign. He distrusted big-business, thinking they should be more like employee support centers, taking their cues from government policy, rather than profit centers. All this kept the depression lingering on for seven more long years. Then, despite himself in 1940, he was forced to buy planes, tanks, ships, bombs, bullets and beans. This was trickle-down economics aimed straight AT business. The depression was over within a year.
When implemented correctly on a business environment that is fundamentally sound, tax cuts work well. It’s like shot adrenalin the company needs to expand. This expansion creates real, sustainable jobs not paid for by taxpayers. This increases revenues to the government. These tax cuts makes it easier for start-ups to flourish, adding additional revenue.
You have a basic misunderstanding of supply-side (trickle-down) tax policy. This is the shaky foundation of what Democratic economic ideas are built on.