Is making the tax cuts permanent fiscally responsible?

McCain wants to make the Bush tax cuts on the wealth permanent. But given the crippling debt, is that fiscally responsible? They say it stimulates the economy but it must not or things would be going a lot better right now.

Given McCain's fiscal record I wonder if him backing this measure is simply politics to hit a Republican nerve.

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  • 1 decade ago
    Favorite Answer

    Yes.

    The tax cuts are what brought us out of the 2000-2002 recession.

    You need to consider the effects of repealing the tax cuts. Remember that the tax cuts were on long term capital gains. By reducing taxes on this type of investment you encourage more money to move in that direction. As a result investment money was placed into long term capital investment.

    Since 'capital investment' is things such as commercial buildings, manufacturing equipment, etc - the more money you have being used in this manner the more economic growth (and jobs) you have.

    Increasing taxes on capital investment will reduce the money being used for this purpose. So higher capital gains taxes means fewer new factories, less new production equipment and fewer new jobs.

    One thing the Democrats do not want you to know is that the government cannot grow the economy. This can only be done by individual investors and entrepreneurs.

  • 3 years ago

    How is it fiscally to blame to permit 0.5 of the inhabitants to pay genuinely no longer something into the gadget, yet acquire some thousand money each and each 12 months in tax returns? Having a inhabitants extensive minimum tax of 5% could enhance lots greater money than doubling the taxes of those making greater suitable than $250,000 a 12 months. it may additionally unfold the soreness, and stress the decrease instructions of our society to take a greater energetic pastime in how the government is dropping money by way of fact it will be their money.

  • 1 decade ago

    The tax cuts were fiscally irresponsible from the start. Not since JFK have tax cuts worked the way Republicans claim they do - Reagan's tax cuts start a slide into recession that brought the stagflation and unemployment of the G. W. Bush years. Only the rich benefit from these tax cuts, and when we're running high deficits, the poor and middles classes eventually pay for them.

  • Anonymous
    1 decade ago

    Its hard for him to explain how "it stimulates the economy"

    The rich will just take the money and invest in China

    Rebuild the infrastructure of America, that will "stimulates the economy"

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