When GWB gave tax cuts to the top 1% percent wealthiest Americans to the tune of one-half trillion dollars,?
why didn't the Republicans demand that he cut spending elsewhere to offset the deficit like they're demanding of Obama to do in order for them to vote for the $34 billion needed to extend unemployment benefits? Ask any economist, and he/she will tell you that when taxes are cut, the deficit goes up.
- 10 years agoFavorite Answer
Let's see how the Republicans wiggle their way out of this one:
1) Tax cuts generate revenue. This would mean we could reduce taxes to zero. Tax cut always reduce the trend line of taxation. Of course revenues grow every year because of population, economic growth and inflation. But a tax cut reduces the trend revenue, which becomes less than trend spending, and wa la! A huge, gigantic deficit is born to pay mainly for tax cuts to the rich.
A tax cut can increase aggregate demand and help get us out of a recession, but to have tax cuts while the economy is in recovery is simply a recipe for disaster - which is probably what Bush wanted.
2) "you are talking to bad economists". On the contrary, to think we can cut taxes and get enough revenue for it when the economy is in recovery is part of what once was called 'supply side economics' and no economist holds that this is true anymore. The evidence from the 1980's is clear and irrefutable - investment and labor hours had no effect from the tax cuts.
3) "Presidents don't spend money, Congress does. ". Wow, such stupidity. Yes, in grade school you learned that spending bills originated from the house. But the fact is that since at least the 19th century, the President has submitted a bill to congress every year.
4) "BUT.. they also own most of the businesses and employ most of the people ". This is beyond infuriating. If you want rich people to hire more people, a tax cut will not do this. No one will hire more people in a recession if you give them a tax cut on the profit from their business or an income tax cut. That is one of the most idiotic things Republicans say. Federal Taxes are NOT SALES TAXES. They are taxes on profits. And we have some of the lowest effective corporate tax rates in the world. And our income taxes are pretty low as well. Low as they were since the begining of the 20th century.
- justgetitrightLv 710 years ago
Do you mean that only the top 1% got tax cuts? Here is the tax tables before the tax cuts
Marginal Tax Brackets
Tax Rate Over But Not Over
15.0% $0 $26,250
28.0% $26,250 $63,550
31.0% $63,550 $132,600
36.0% $132,600 $288,350
This is after the tax cuts
Marginal Tax Brackets
Tax Rate Over But Not Over
10.0% $0 $7,000
15.0% $7,000 $28,400
25.0% $28,400 $68,800
28.0% $68,800 $143,500
33.0% $143,500 $311,950
It appears to me that the top 1% only got a tax cut of 4.6% while the middle class person making
$26,250 got a 12% tax cut.
How did this impact revenues ?
WTF... you cut taxes and federal revenues increase ?
Now how did this impact the national debt?
WTF you mean the national debt increased at a lower rate. Well yes it did that is until the democrats gained control of congress where it went berserk
And is still going berserk today
$883,173,336,866.20 (partial 2010)
In 2009 congress passed the $878 billion stimulus bill for job creation, today approximately $200 billion of this money is unspent. Later in 2009 (early 2010) congress passed the bill known as Pay/Go. This bill requires all new bills to provide a source of funding except in an emergency.
Define emergency - "a sudden unforeseen crisis (usually involving danger) that requires immediate action"
Unemployment has been a problem for over a year, congress was well aware of expiring benefits since they were last extended in March, this certainly was not "A SUDDEN UNFORESEEN CRISIS"
The republicans want to fund the extension either through cuts in other programs or by spending some of the remaining stimulus funds that were granted for jobs.
The democrats wanted to keep their money and keep adding to the national debt, a debt that is likely to reach $14 trillion by this time next year.
- Anonymous10 years ago
Where have you been? One Economist after another has been shouting out that the ONLY PROVEN WAY TO CREATE PROSPERITY IN THE JOBS MARKET IS TO CUT TAXES. That one percent tax cut, created more jobs than could even be counted because those top earners own businesses who hired employees who paid taxes and CUT THE DEFICIT DRASTICALLY.
Are Republicans happy with some of what Bush did? NO, of course not....what we are unhappy with is how BUSH WAS ACTING LIKE A LIBERAL DEMOCRAT TOWARDS THE END OF HIS PRESIDENCY WITH BAILOUTS, ETC.... The problem with Bush was only when he did what DEMOCRATS ARE DOING RIGHT NOW.
Ya know the Financial REform Bill signed today? Frank and Dodd made a statement this morning that put the stock market into a freeze: they said that the Bill now signed does not yet HAVE THE BLANKS FILLED IN.....Any President can pass a bill that has no details....the same with the Healthcare bill.......it has blanks to be filled in at the will of liberal democrats in power.
Anyway, the financial reform bill, Dodd says "We won't know if this legislation will help this generation or the next one when a problem occurs....we will have to see what the consequences of it will be". WOULD YOU BE HAPPY WITH YOUR MECHANIC WHO JUST FIXED YOUR BRAKES IF HE SAID THAT ITS UNKNOWN WHETHER THEY WILL WORK UNTIL YOU HAVE TO SWERE GOING 65 MPH TO AVOID HITTING AND KILLING SOMEONE??????
The Financial Reform Bill has already frozen Bond sales in America: If you want to buy a Bond, the Bond companies are refusing sales because they don't know what legal consequences they will be in if they offer up their credit rating to back those Bonds. THIS IS JUST PART OF OBAMA'S PLAN TO DESTROY OUR PRIVATE SECTOR ECONOMY: NOTHING MORE.
To top it off, the Bill does not even address the real problem with the economic emergency:
1. Dodd and Frank are the ones blatently responsible for the Crash of the housing market that spiraled into devastation and screwed the entire economy. But now we have THEM FIXING IT??
THEY SHOULD BE IN JAIL.
2. Dodd and Frank did their nasty dirty underhanded business thru Fannie and Freddie, and what a surprise! FANNIE AND FREDDIE ARE NOT EVEN MENTIONED ONCE IN THE BILL: THEY ARE IMMUNE TO ALL THESE NEW REGULATIONS AND FREE TO CONTINUE TO DESTROY THE HOUSING MARKET FURTHER. Obama now "owns" 75 % of all mortgages in America, which means he owns all that property. Remember: what the government gives to you, they can also take away.
AMERICA IS IN VERY BIG TROUBLE. WE CAME TO ULTIMATE POWER AND PROSPERITY LESS THAN 224 YEARS AGO AND WE ARE THE ONLY COUNTRY OUT OF 192 U.N. MEMBER COUNTRIES WHO HAS NOT HAD A GOVT OVERTHROW AND WAR EVERY 30-40 YEARS.
WE HAVE BEEN A STABLE NATION, BUT OBAMA IS CHANGING ALL THAT. NOW PEOPLE ARE MOVING THEIR BUSINESSES TO SINGAPORE....THEY ARE THE NEW BEST NATION TO BE IN BUSINESS IN.
IF ANYONE OUT THERE WANTS TO JOIN US: WE ARE GATHERING AT THE LINCOLN MEMORIAL TO RESTORE HONOR IN AMERICA ON 8/28. This is not political. Leave your signs at home and bring your children. If you need transportation help, go to this link:
WE ARE NOW OVER A MILLION AND A HALF STRONG AND SIGNING UP THOUSANDS EVERY DAY.....JOIN US AND WATCH AS MIRACLES HAPPEN IN YOUR LIFETIME.Source(s): http://www.freedomworks.org TAKE AMERICA BACK: START HERE http://www.912project.com http://www.parentalrights.org (Obama wants to take away your parental rights,give them to U.N.) http://www.oathkeepers.org (10 orders our own military heros won't follow if Obama gives them)
- Anonymous10 years ago
Funny thing.. there are a LOT of economists ( in a fact a very large majority ) who will tell you that cutting taxes will improve the economy, resulting in more taxable income. Which, in turn, will reduce the deficit.
But one thing no economist will ever tell you.. pulling an Obama and increasing deficit spending by a trillion dollars is a good way to reduce the deficit..
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- smsmith500Lv 710 years ago
Actually the Bush tax cuts gave money back to over 105 million working americans. And which economists do you talk to? the ones that use the Communist manifesto as research material? The plan was to cut spending, unfortunately something called 9-11 happened and we ended up at war.
What we wanted to do was to use the unspent money from the stimulus to extend unemployment. Why did the Democrats prefer to spend more money rather than use what they already had?
- Uncle PennybagsLv 710 years ago
Maybe you can explain it to me then.
I was earning 45K at the time. My income tax bill went from $1,200 the year before, to $0 after the tax cut. Does $45K put me in the top 1%? Or could it be you are just making up this crap?
And if any economist will tell me that when taxes are cut that deficits will go up, why did federal tax revenues go up after the tax cuts?
- DaisyLv 710 years ago
Because Republicans don't care about the deficit. They only want to use it to bash Democrats who are trying to get the economy back on track. Or spending more money on wounded vets from Bush's wars. Or unemployment compensation to keep families in their homes rather than on the streets. Or a multitude of other things that don't necessarily benefit the rich.
That's what Republicans do: they demand spending cuts to offset things for the working man (or one who used to work before Bush's financial meltdown), but no spending cuts to offset tax breaks for the wealth.
- myopinionLv 710 years ago
It's very hard for me to defend Bush, and actually I don't mean to.. but I have to comment on this.
For all who whine and complain that the wealthiest got the big tax cuts, you must remember, even with the tax cuts, they still pay the highest taxes.. and so they should. BUT.. they also own most of the businesses and employ most of the people who who are now whining about the tax cuts.
Why do you think there are so many unemployed right now.. Obama went after the big guys,, the ones who got those tax cuts.. he was going to bring them all to their knees.
Doin' a damn fine fob, Barry. Now they are not hiring.
So, we can't have it both ways.. we can't earn the big bucks if we don't have a job, now can we. Altho many of you are happy to just let Barry keep extending unemployment and using up our great grand children's future with huge loans from China.. but for me.. I would far rather see a big company get a few tax cuts but then make room to hire me.
All our companies would not be overseas if we had maybe tried a little harder to keep them here.. right. Then maybe we would be the ones doing the work, and not some east indian or chinese.
- 10 years ago
tax is a word with a static definition...the dollar on the other habd is very dynamic, in that it's value always changes. Raise taxes and the dollar falls because you won't get a raise, businesses wont hite new, peoples income will shrink and prices wil fall, shelves will get over loaded and ware houses will fill up.......stagflation.......recession due to employers having less income to invest in your sorry employee ****.Source(s): me and my milliones
- CCLv 410 years ago
Presidents don't spend money, Congress does.
The deficit didn't go up because of a lack of revenue, revenue actually increases during the Reagan and Bush administrations. The deficit went up because Congress spent MUCH more than the additional revenues generated. It's a spending and entitlement problem, not a revenue problem.