Anonymous
Anonymous asked in Politics & GovernmentPolitics · 8 years ago

How do tax cuts hurt the country?

Other than how it forces our incompetent government to borrow more. That doesn't count however because fiscal conservatives want to undermine that ability to recklessly borrow.

Other than that, how do cutting taxes hurt the economy?

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  • 8 years ago
    Favorite Answer

    That's a trick question because it doesn't, provided who is doing the cutting understand the right way of doing it. Warren Harding and Calvin Coolidge cut the highest income tax rate from 70% to 29% and cut government spending 50%. The result: the Roaring 20's and unemployment of less than 2%. JFK's posthumously passed income tax cuts (90% to 50%) also had a good effect on the economy, creating the revenues for LBJ's Great Society spending.

    Reagan cut the highest income tax rate from 70% (again) to 28%, plus 15% across-the-board tax cuts. He also had the courage to tough out reigning in the money supply that was causing the crippling stagflation. Both of these policies created a new, a solid foundation for the country that supported a 17 year booming economy. Revenues during this time also doubled from $500 billion to $1 trillion. Unemployment dropped from 10.4% to 5%. Across the pond, Margaret Thatcher lowered the highest tax rate from a stifling 95% to mid-thirties with similar results.

    Clinton cut the Capital Gains Tax, the already good economy went into overdrive. After implementation of the Tax Relief and Reconciliation Act of 2003 (part 2 of the Bush Tax cuts), unemployment dropped and kept on dropping into the 1st quarter of 2007 to a low of 4.4%. The increase of revenue this generated made his 2nd term deficits step down significantly, on track with the projection of a balanced budget in 2010. All of Bush's gains were blown out of the water by the mortgage meltdown, unrelated to the tax cuts.

    When implemented correctly on a business environment that is fundamentally sound, tax cuts work well. It's like shot adrenalin the company needs to expand. This expansion creates real, sustainable jobs not paid for by taxpayers. This increases revenues to the government. These tax cuts makes it easier for start-ups to flourish, adding additional revenue.

  • Anonymous
    4 years ago

    Yes, we could not then and can not now, afford the loss of revenues along with the increase in power gained by the richest 10% of the population. "...Using CTJ's numbers, if one assumes that 20 percent of the tax cuts paid for themselves (overall), the non-interest cost would be approximately $1.7 trillion. If one assumes that half of the tax cuts paid for themselves (which we would consider to be a pretty extreme assumption), then the tax cuts would have cost around $1 trillion over the past 10 years."

  • 8 years ago

    For one thing, they'v gutted the infrastructure.

    The plutocrats see America's infrastructure as a relic of the Rust Belt.

    They want to take the megabillions they save from taxcuts and speculate in foreign bubbles in currency, commodities and real estate.

    ===========

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

    "Adelson told ABC News “So I lost $25 billion. I started out with zero...(there is) no such thing as fear, not to an entrepreneur. Concern, yes. Fear, no.”

    "In Forbes 2009 world billionaires list, his ranking dropped to #178 with a net worth of $3.4 billion, but in 2011 he was ranked as the world's 16th richest man with a net worth of $23.3 billion."

    ==========

    That's how they make $20 billion in 2-3 yrs.

    He's gona drop $12 billion in a real estate deal in Macao.

  • 8 years ago

    Tax cuts don't "force" our government to borrow more. How about DECREASED SPENDING?

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  • Anonymous
    8 years ago

    Less funding for important government programs that help stimulate our economy. These programs create jobs. Also the more money the government has more government jobs can exist.

  • Anonymous
    8 years ago

    Tax Cuts HELP the Country.

    See JFK & Reagan.

  • Crow
    Lv 5
    8 years ago

    Other than police, firefighters, & teachers being fired?

    Romney wants to cut 5 trillion in taxes and boost defense spending.

    Source(s): “It was noticeably lacking in any mention of Romney’s own record of increasing spending and debt in Massachusetts and his failure to lay out a plan to pay for his $5 trillion tax plan,” http://abcnews.go.com/blogs/politics/2012/05/repub...
  • Anonymous
    8 years ago

    actually, (and you would know this if you'd ever study economic history!) tax cuts have resulted in increased revenue every time they've been tried!

  • Anonymous
    8 years ago

    We're broke.

    Significant spending cuts + Tax increases are necessary to get us out of the Debt/Deficit problem.

    It worked for Reagan.

  • 8 years ago

    "fiscal conservatives want to... recklessly borrow"

    NO

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