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Do Pro Tax Cut people finally recognize the potential negative aspects we are currently facing? |
This is not an anti tax cut question as I firmly believe (as any intelligent person should) that tax cuts are fully capable of raising more tax revenues in many cases. However, as put by the Concord Coalition, "treating taxes and spending as 鈥榮eparate deals鈥?is an economic fantasy. To be sure, low taxes theoretically encourage economic growth by providing incentives for work, saving and investment. However, if taxes fall too far below government spending for too long, the resulting deficits will eventually cancel out any positive economic gains.鈥?br /> Right now, we are facing potential steady increases in interest rates to make our debt attractive enough to be continually financed as well as continued inflation. So my question remains, why do those who support tax cuts so heartily never seem to recognize that equal emphasis on controlled spending is critical to make the anticipated economic growth meaningful? Sadly so few politicians recognize (or at least care) about this. You're right that Republicans have ignored the deficit problem. The solution is to cut spending on wasteful federal entitlements and corporate subsidies. The way the Republicans have spent while in power destroys any credibility they had on disciplined governance. I don't think most "pro tax" people think two dimensionally enough to understand how tax cuts can put more money in everyone's pockets or how raising the minimum wage takes more from the people who earn it than from the people who pay it. It seems counter-intuitive to them and on top of that, you have Democratic politicians making a living by reinforcing their beliefs. You have to keep in mind that Democrats tend to advocate more taxes with more government spending (on social programs or whatnot) and Republicans are in favor of reduced taxes with spending cuts. In this case, the Republicans who support tax cuts DO put emphasis on controlled spending. I don't believe there is a strong political party that is disillusioned enough to advocate increased spending with tax cuts. EDIT: Naturally Republicans don't advocate cutting back on government spending because that hurts GDP and makes people angry. Politics is all about highlighting the good and hiding the bad. The same rule applies for Democrats: they talk all about how the government is responsible for so much and so more programs will be created to help the poor or the elderly, all the while suppressing the fact that these additional programs will require higher taxes. |
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