Does anyone actually believe increasing taxes and draining billions from the economy will improve the economy?

Question

Tax cuts and tax rebates have been used to boost the strength of the economy. How do democrats explain how doing the oposite will not send it down the craper.

Even if it's "just the rich". The top 10% already pay for 90% of income taxes. Will it be a free ride for everyone else?

80% of the "RICH" are the small buiseness owners who create jobs in this country.

Their rise it taxes will be others loss of jobs.

Government has grown to 3 Trillion a year in spending. Thats almost double what it was just twelve years ago.

How about cutting taxes and spending.

Thats the 'change' this country needs.

Commy b******s

Answer 1

they like to collect large sums of money so when they steal 100 million dollars or get millions of dollars in kickbacks nobody will notice.  they want to be rich.

they also like it when the economy is in trouble because the people are complaining and looking for a new solution.  the new solution is always socialist in nature and will control markets.  their control of the markets will lead to even more whining of the people and thus more control of the markets.

Answer 2

U have given the answer urself albeit in a cross manner.For them to drain ,u need to fill their coffers.

Answer 3

It worked in the early 90's.

Read the letter from Ben Stein (a conservative) to John McCain.

Answer 4

So. . .how's the economy under your model working out for ya?   Are you feeling the republican economic "boost" yet?   I'm one of the fortunate members of that top 1% income bracket, and I still believe even I would (will!) be better off under democratic rule.  Note that Obama is not proposing tax increases as you suggest, but that aside your analysis does not consider the billions that are added to the economy when tax dollars are used to fund schools, health care, and infrastructure.  Dont jobs for teachers, nurses, police officers, and construction workers count?  What about the tax dollars we save down the line on prisons and homeless shelters when our kids are given access to quality education and healthcare?  Isn't that the kind of country you want to live in?  I for one think its worth it, even if you believe I'm getting robbed.

Answer 5

It's a theory called Keynesian economics. It basically believes that the government can act as a consumer, and since the government has the ability to spend more money than any other consumer, the economy can be improved by this government spending. Under this theory, if the government goes into deficit spending by making contracts for production, building projects, and various other ways, the economy will improve.

One who believes this would say that it doesn't matter that taxes are being increased because the money which would otherwise be spent by citizens will instead be spent by the government. The overall economy still has the same amount of money being spent, so why would the economy be effected differently?

What does the government care if small business owners lose their businesses? The jobs lost can be placed into the public sector in the form of government jobs. This was done extensively during the Roosevelt administration in the public works projects.

The problem with this is that it only works short term. As soon as you destroy the tax base by taking so many jobs out of the private sector, the government can no longer fund itself and will eventually develop such a huge defect that it will bankrupt itself.

I must state that I DO NOT AT ALL AGREE with Keynsian economic policies, I'm just giving a possible rationale for how the economy could benefit from a "tax and spend" doctrine. I think FDR was the WORST president our country has EVER had. He created the trend toward federal control of business and big government with excessive spending on socialistic programs.

Answer 6

Funny... You mention the fact that our spending is almost double that of 12 years ago, when Bush has been in the drivers seat for the last 8... You can rail all you like about the downfalls of increased taxes and "socialist" ideals, but in Czech Republic (where I currently live) they pay 19% taxes on everything, including income, and they go to university for free and don't have to pay for medical care... And those are just a couple of the benefits... Imagine knowing that your retirement will be secure, (I know it will take a while to get to that point, thanks to the spending of the current "regime") knowing that your kids can go to college and it won't cost you anything, knowing that if you break your leg or your child is hurt, or your wife is pregnant that it will be completely taken care of, and it will be the best quality health care... How much of our money is spent on education and health care alone?

Now imagine that you get a government stipend to help you take care of the extra costs (books, clothing, food etc) while your child is in school, the entire time they are in school, from K to university graduation. Imaging all the help the government can offer everyone else that wants to start small businesses and create more jobs... You know, those who cannot currently afford it?

Will all these things happen in your time? No... That's just not possible, considering how deep in debt we are... But the fact is, they can happen for our children and/or our grand children... We need to be thinking about them as well as ourselves... As long as we continue going the way we are, things will keep going as they are... The deficit will grow, we will owe other nations more, the quality of education will continue to worsen, medical costs will continue to rise... Things will certainly change, but they will not change for the better...

One more thing to consider... You're right about the tax cuts and rebates being used to boost the strength of the economy... But what lasting effect have these things had? None... We need to quit looking to the temporary solution and the quick fix because they NEVER work! Let's look to the future... Let's look toward a permanent solution... We are NOT going to have that permanent solution with McCain in office... Will Obama do it? I don't know... But there is a better chance of it happening with him than with McCain...

***EDIT*** I do agree with you, that the government seriously needs to cut spending... The problem is, they aren't going to, and until the American people get off their dead a$$es and force them to, that's just all there is to it. The thing (actually, one of many things) about McCain that bothers me is the fact that he says he is going to cut taxes and increase spending. I'm no econ major, but I know that's not going to work. No... He has not said "I'm going to increase spending" but he has "pledged" to have this financial sinkhole we call the war in Iraq over and our troops home by 2013 and continue the Bush plan to support them. We made the mess, we need to clean it up, but neither of those things decrease spending. Another problem is, McCain wants to decrease taxes, and build 45 more nuclear reactors across the U.S. and pledge 2 billion per year to make clean coal a reality... How deep in debt do we need to go? It won't be long, at this rate, until America is the newest and most hi tech of the third world nations!

Answer 7

depends on who you drain it from.

dboy