Help Me Understand Something (Taxes)

[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?

[Geoff R. Casavant]

1. Well, there you go again.

Using your brain to try and figure out the logic of a right-wing talking point. Better people than you and I have tried, and been driven mad.

The only thing more pointless would be to try an explain the logic fail to a teabagger.

[safeinOhio]

2. cutting taxes and regulations do contribute to

growth. That is, financial growth for the very rich.

[lumberjack_jeff]

3. The problem is wealth concentration

tax cuts don't help.

[Jackpine Radical]

7. You say "wealth concentration"

as if that were a bad thing.

Remember what Andrew Mellon said: "Depressions are merely those times when wealth flows back to its natural owners."

Mellon was Hoover's Sec'y of Treasury.

[Skink]

4. We've already seen the prosperity that regulation and raising taxes brings.

they (Republicans) know that cutting taxes concentrates wealth at the top. They think we are all stupid, but have managed to garner support from enough people to remain a viable party.

[ejpoeta]

5. because it SOUNDS good. cut taxes and less regulation will solve

all of our problems. nevermind that it hasn't helped the past eight years that we have gone off a cliff. people seem to have disconnected reality from things that sound like nice lines. it sounds great! but where is the thought process for people to do the math and figure out if it is even something that is possible.

here's my thing. they want tax cuts... but they aren't going to cut spending. so how are we going to pay for things? there is one ad on my local tv for a guy running for ny assembly talking about albany using our tax dollars like a credit card. i would argue that the republicans want to spend using a credit card and then stick us with the bill. because if there are tax cuts... that means WE will have to pay the bill. make no mistake... they reveal themselves when they vote for a bill but then refuse to vote for the funding of that bill. they want to spend. they just don't want to pay for it. and in the end we will all pay for it. and when i sa we, i mean us regular everyday folks.

[Jackpine Radical]

6. They're right on this.

Cutting taxes and regulation will stimulate job creation (in China) and economic growth (in the wealth of the top 0.1%).

You got a problem with that?

[Ozymanithrax]

8. It's like religion...you don't have to understand...only believe...

in bullshit.

[mwooldri]

9. Depends which bunch of conservatives you speak to.

If the Repukes come into office, I hope they learn some lessons from the Conservative/Liberal-Democrat coalition government in the UK.

Overall, taxes have gone up, public spending is going down. There will be some tax cuts for those at the lower end of the income spectrum. There will be a comprehensive defence spending review. In the short term, growth is being curtailed. However debt is going to go down. This is what is happening right now under a "Conservative" government across the pond.

The cutting taxes part is supposed to mean that those more wealthy who would benefit greatly from those tax cuts and open up their wallets and generate wealth down the line, and also to give an incentive for the wealthy to stick around and feed the money into this country's economy rather than some other country. However over the Bush II years we have seen that this is not necessarily the case - with the wealthy hoarding most of their earnings and not opening up their wallets for the greater good of society (a few notable exceptions of course...) and spending the money abroad.

Higher taxes forces the rich to have open wallets. There will be some wealthy people who will take a dislike to the higher taxes and move to another country (with much lower taxes of course) but the great majority of the wealthy will stick around, grumble about the higher taxes and get on with life.

[Yupster]

10. Here are the unemployment numbers

These are for August of 2000 to 2010. This is the number they post on tv not including those out of the labor force. The real number is much higher every year.

2000 4.1 tech bubbble bursts as Enron, Worldcom declare bankrupcy
2001 4.9
2002 5.7 9-11 attacks
2003 6.1
2004 5.4
2005 4.9
2006 4.7
2007 4.6
2008 6.1 real estate bubble bursts bringing down banks - Lehman Brothers bankrupt
2009 9.7 GM bankruptcy
2010 9.6