If Obama's policies have failed to stimulate the economy, then why do republicans want to keep cutting taxes?
for the richest Americans? Is that to say that these policies haven't failed? That these policies have stimulated growth?
Obama has continued the Bush tax cuts throughout his presidency. They're set to expire, and the economy could be much better. So why do Republicans think tax breaks will spur job growth, when unemployment is still just over 8%?
It hasn't worked thus far.
Why don't Republicans acknowledge this failed policy?
- Anonymous8 years agoFavorite Answer
da- because it has worked every time before.....but ....no obama wont do it because their agenda is to bring down America
- SocratesLv 78 years ago
You have a basic misunderstanding of how tax cuts work. The Bush tax cuts did exactly what they were supposed to do in stimulating the economy, 9+ years ago when they were actually tax cuts. They were responsible in dropping unemployment from 6% to 4.4% and increasing revenues. When the recession hit, that wiped the slate clean. After that point, not extending them would be equivalent to a huge tax increase. Even OBAMA admitted that raising taxes during an economic downturn was a bad idea (I guess he forgot saying that). How does raising taxes ever help an economy?
Think about this. That tired old line about tax cuts for "the rich" would be used even if the rich were paying 90%, and it has. It is a line parroted by those who only choose to react to issues, instead of trying to understand them. Do YOU want to pay 39.5% of what you make in taxes? That's what you are asking the rich to do when you accept that tired line. Perhaps you haven't been told that 2/3 of all small businesses and their owners are effected by the high-end tax cuts. Small business is what leads American economies out of recession. All this does is put a bigger, fatter jockey on the back of the economic racehorse than the one that is already there. Obama is already dumbfounded on why the horse isn't winning races again. Not extending the high-end tax cuts is part of the "taxageddon" people have been fearing come January 1st.
Here's a history of this "failed policy". 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. We covered the Bush tax cuts, but in addition, the increase of revenue this generated made his 2nd term deficits step down significantly (the lowest deficit below $200 billion), 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.
- Jane DoeLv 68 years ago
Obama him self said that raising taxes during a recession was bad policy.Clinton said it recently.Obama is pulling a reelection trick.Class war fare which the Democrats have used many times,and he can make the Republicans look bad when they vote it down.He is playing politics while people out here are suffering.Doing whats right for himself instead of whats right for the nation.Even if he was serious which he is not,it would only raise 70 billion in revenue,not even enough to pay the 100 billion illegals cost us every year.
- DustbindivaLv 78 years ago
His policies have NOT failed. That is Republican trash talk. He has plugged the leak in the dyke left by the previous administration. He took on an $11 trillion federal debt left by Bush when he took office and a $1.2 trillion deficit and though he added $5 trillion to the previous debt, he has reduced the deficit. The Republican Congress wont pass his jobs bills.
He has added 4 million private sector jobs, given numerous tax credits, tax cuts, tax rebates for individuals and small business, health insurance reform, banking and credit card reform, attempted financial reform, capture of many terrorists including bin Laden, deportation of 400,000 criminal illegals, reducing the cost of student loans and reducing government costs of SSI and Medicare by consolidating of functions and uncovering fraud, reducing social security tax, extending unemployment bennies, giving seniors a one-time rebate, saving the American auto industry and thousands of related jobs from going non Union or overseas, signing a nuclear treaty with Russia, reducing federal employee workforce, paying states share of Medicaid, saving first responders jobs, eliminating discrimination in the military and supporting gay marriage, double the Dow Jones index from 500 to 13000.
Mr. Obama has uncanny knowledge of governance, geo-politics, domestic social policy, international relations and macro-economics.
- How do you think about the answers? You can sign in to vote the answer.
- Drone FodderLv 48 years ago
Don't waste your time. They're enjoying big profits and nothing matters but that. They'd rather throw the old and the poor and the students and the veterans under the bus to keep their wallets full. They invent things like corporate personhood to keep power and shelter money and never stop wanting more. They pretend like taxes are high and poor people aren't working (and assume that leaching off of capital gains is(!) working) to convince each other and the most stupid and self deluding poor people that they have reasons for their greed. Don't assume they don't know what they're doing. They're listening to very skilled educated corporate thieves.
- 8 years ago
I sure wish left wingers weren't so rationally challenged. Nobody except the left wingers say the republicans want to cut taxes for the richest. It is a lie that only the brainwashed and feeble minded believe.
Obama has done his level best to put one roadblock after the other up to job creation. I do not believe Romney will do that. He understands how businesses works. Obama obviously doesn't and needs to be replaced.
- Judge DreddLv 58 years ago
So your saying Obama has been extending a failed policy throughout his presidency. And when the republicans agree with him on something, like extending the tax cuts, you have a problem with it. Are you ever happy?
- Anonymous8 years ago
You're talking about the Bush tax cuts right? There not Obamas policies,Einstein.
- Anonymous8 years ago
the Bush tax cuts aren't stimulating the economy because businesses don't know what he's going to do if and when he gets reelected! not much point in spending the thousands of dollars per employee if the President turns around and raises their taxes thru the roof!
- Anonymous8 years ago
They've gone back and looked at the numbers during the Reagan and Bush administrations. They noted that revenue went down immediately following their tax cuts, but a few years later rose back to what it was previously. This has convinced them that cutting taxes actually causes a growth in government revenues. They merely have to ignore all the other years where revenue increased due to inflation and population growth and assume that neither of those factors were in play at the time of the tax cuts..
- Texas MikeLv 78 years ago
Cut a lot deeper and eliminate half of government