if tax cuts work.........why cant that be applied to all govt services?
if tax cuts infuses the market and increases productivity,,,,,why not lower fees for city transportation to increase ridership?
- ElanaLv 71 decade agoFavorite Answer
"If tax cuts work" assumes facts not proven.
Indeed, this is one of the most controversial
statements in economics.
Its like starting your question was "If Hitler was
a saint", at least to some.
Certainly if you cut taxes and change no services,
than the economy will have a little more money pumped
into it and that is good. Of course if the money you
sacrificed was "preparation money" (such as money
used for emergencies), you are less prepared for
emergencies. If and when an emergency happens,
whatever gain you got from the tax cut is lost in
When the economy has to start handling
all of the fall-out for when education, social services,
etc, go bad, it can end up being far worse than any
gain the tax cut gives you.
You also need to be careful at WHAT level the
tax cut is - in the recent past, the tax cuts have
benefited the most wealthy on the idea that
(according to Reagan): "A rising tide lifts all
Reagan was an idiot (though a charming one).
If you're not in a boat, a rising tide causes you to
drown. Similarly, a happy stock market is not the same
thing as average salaries increasing.
I wholeheartedly agree that our government is
needlessly bloated - but not because it offers
services that aren't useful. It is bloated because
it is completely unable to fire deadwood.
Tax cuts usually lead to the rich getting richer
and the poor getting poorer. That isn't a feature
of any cut per se, but the cuts we have had in the
Regarding public transportation, certainly making
it cheaper will increase ridership somewhat, but
how will you pay for the things that need to be done
to keep public transportation going?
I have an idea... Right now we use the general
taxes to subsidize the building of highways. It doesn't
matter how many miles you drive - some percentage
of your income taxes go to concrete.
Why not simply pay for any highway infrastructure
changes out of gasoline taxes? For most, the price
of gas goes up but their taxes go down. Its great
incentive to drive less and use public transportation
THIS is probably the biggest reason that gasoline
prices are so high in Europe - they pay for the roadways.
(The second biggest reason is that most of Europe
has no gas of its own).
Indeed, you can imagine using gasoline taxes to
fund improvements in public transportation infrastructure.
Everybody wins except those who are forced to
use gasoline ... and the oil and car companies.
I expect gradually increasing taxes on gasoline and
phasing out highway infrastructure funding will spur
on technological development (just high prices is
already doing that) - and eventually those people
who are forced to use gas will have an alternative.
In that case, who would the losers be?
You guessed it - the oil companies. Now do you
see why it isn't happening?
- 1 decade ago
How can you possibly confuse bus fare with a tax cut. Yes ridership would increase if fares were lower, but the transit system would just be losing more money than before. I guess we could charge nothing to ride mass transit but at that point mass transit would simply become rolling hotels for the homeless.
- 1 decade ago
Why not offer the service at no charge, in most cases the tax payers bear the financial brunt of public transportation weather they ride it or not anyway.
- Anonymous4 years ago
Taxes alone can't solve the deficit. I beg to differ, if you are receiving revenue(taxes) and you don't spend any money, you reverse the deficit. Obviously that is the extreme example here but spending cuts alone CAN end the deficit.
- How do you think about the answers? You can sign in to vote the answer.
- wolfLv 61 decade ago
- 1 decade ago