Joan asked in Politics & GovernmentPolitics · 1 decade ago

Why do Republicans want more tax cuts?

Would cutting taxes force the government to spend less or would they borrow more?

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  • 1 decade ago
    Favorite Answer

    Greed, pure and simple, is the motivation behind tax cuts. They obviously do not stimulate the economy - Bush has been pushing tax cuts through for eight years, and the economy has tanked. The money does not "trickle down" either - the poor and the middle class are clearly hurting, while the rich have not felt the strain. Tax cuts are not an economic program - that kind of talk is just an excuse for greed.

  • 1 decade ago

    The general idea is that cutting taxes, the capital gains tax for example, frees up more capital that can be invested. Since private enterprise in a free market is more efficient at allocating capital than the relatively more inefficient and unresponsive government can (do to its bureaucratic interests), then in the long-run, the government will gain more revenue by cutting taxes.

  • Anonymous
    1 decade ago

    Because some of them may think it will stimulate the economy. Others feel that the other way around- raising taxes- would hurt the economy and create more strain upon Americans. I think some Republicans MAY (not sure on this one) believe that since the rich earn more, they deserve more tax cuts. My opinion is that tax cuts for the rich (not middle class, I support middle class tax breaks) don't do much for the economy. I believe that these tax cuts only increase the deficit. They won't stimulate the economy nor improve it..

    Source(s): Took an economics class before. I also studied the issue a bit.,
  • 1 decade ago

    Why both the Democrats in the race pledging to increase taxes INSTEAD of addressing the cause of the Federal Debt? Democrats have a greater desire to buy votes with your tax dollars (Republican do it too BUT at least they do it with building projects).

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  • 1 decade ago

    Tax cuts spur the economy and at times can actually increase revenue to the federal government. It's called the laffer curve. Read about it here.

    http://en.wikipedia.org/wiki/Laffer_curve

  • 1 decade ago

    Borrow more if they don't reduce the size of the government in conjuction with a tax cut.

    All that money we borrow from Japan and China? Is borrowed in large part to keep our taxes low.

  • Anonymous
    1 decade ago

    Barrow more when you look at the Republican record. I think they think that cutting taxes creates more revenue. I think they got enough tax cuts by sending our jobs overseas.

  • 1 decade ago

    because they want people and companies to spend money, that supports the economy, improves consumer confidence and slows down inflation.

    when you tax someone, then they aren't able to spend as much money, which means less people are able to work because less money is being spent.

  • Anonymous
    1 decade ago

    1 - To allow citizens to keep more of the money they earn.

    2 - Hopefully spend less.

  • Anonymous
    1 decade ago

    Its proven the more you cut tax, the more tax revenue you receive..Look it up..

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