Help Me Understand Something (Taxes) [View All]

[iamjoy]

The Conservative argument is that we need to cut taxes and ease regulations in order to stimulate growth and job creation.

In the 2000s, the top marginal tax rate was at its lowest level since the the 1920s, and yet, it was followed by what was arguably the worst financial crisis since the 1920s/1930s

http://www.truthandpolitics.org/top-rates.php

Many agree that lax regulation contributed to this financial crisis.

So please explain how cutting taxes and relaxing regulations is supposed to help create long term growth. I won't argue that tax cuts and lack of regulation can create growth in the short term, but it seems to me that is sacrificing quality for speed. Isn't this what we have been doing for years and it finally caught up with us?

I think we also know by now that tax cuts don't pay for themselves. So whether you cut taxes or increase government spending (or both) we are going to add to the debt. If we cut spending, well, what do you cut? Many Liberals love the idea of cutting defense, but there are people working in factories making the equipment to feed our military-industrial complex. They would be out of work. I don't think there are any cuts that won't affect people.

So, if cutting taxes and easing regulation does not lead to long term growth, and only increases the debt, why would any one think that putting Conservatives back in power would help the economy?