Why Do We Need More Tax Cuts?

#1
Velo Vol

Velo Vol

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#1
I remember listening to comedian Rush Limbaugh during the summer of 2008. At the time he was trying to prop up the Bush economic legacy and said that the economy at that time (just before the financial crash) was in better shape than it had ever been in the 1990s. And, of course, the reason was because of the Bush tax cuts.

Fast forward almost two years: the tax rates haven't changed, yet the economy is now stuck in the gutter. The solution, according to Limbaugh? More tax cuts!

My question is: if the Bush tax cuts were responsible for the economic awesomeness of the mid-00s, why did they fail to prevent the Great Recession? Why do we now need even more tax cuts? Why didn't Bush and the GOP simply set the rates at the perpetual awesomeness level when they cut the rates before?
 
#2
#2
I think the government should run everything. We would work for the government, and they decide who gets paid what. That would shut up all the tax cut talk for everyone. Everyone would be even, no matter what they earned. All we have to do is put our faith in the government.
 
#3
#3
Velo Vol said:
Why didn't Bush and the GOP simply set the rates at the perpetual awesomeness level when they cut the rates before?
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This made me laugh.

I think you will find on here that less taxes is always better, no matter what. At least that is what seems to be spouted.

Bush's problem wasn't taxes, it was spending. I think he had it about right with the taxes. I also think it is a little short-sighted to blame the recession on Bush's tax structure.

Obama's problem is kind of two fold. He is going to increase taxes (despite what we've been told) which is fiscally responsible if he is going to increase spending. The problem is he is spending WAY more than he is taking in, so not only does he have it wrong on taxes, he but his spending is out of control too.

At least from a fiscal perspective, neither Bush nor Obama have anything to brag about.
 
#4
#4
I also think we have reached the point of diminishing returns with taxes. Anymore increases and economic growth will start to take some serious hits. I think we are right about where we need to be, probably make them a little lower across the board.

Spending is the side of the equation we need to fix. Government has just gotten too big. We really don't need all the crap they sell us.
 
#5
#5
BeecherVol said:
I think the government should run everything. We would work for the government, and they decide who gets paid what. That would shut up all the tax cut talk for everyone. Everyone would be even, no matter what they earned. All we have to do is put our faith in the government.
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Why does most everyone on here act as if the government is some foreign entity these people did not appoint themselves they were voted in, sure you may have voted for someone other than who is in office but you had your say and if you did not vote then shut the hell up.If you do not like how the gov. is operating then pick yourself up by the bootstraps and work harder to get your candidates elected instead of constantly whining on V.N.
 
#6
#6
DAVOL said:
Why does most everyone on here act as if the government is some foreign entity these people did not appoint themselves they were voted in, sure you may have voted for someone other than who is in office but you had your say and if you did not vote then shut the hell up.If you do not like how the gov. is operating then pick yourself up by the bootstraps and work harder to get your candidates elected instead of constantly whining on V.N.
Click to expand...

Are you suggesting the VN Politics Forum be abolished?

This ain't the football forum, we are on topic as scheduled.
 
#7
#7
Why do you ask a question that shows you view the world from the perspective that people are fortunate for whatever the government allows them to keep of the money they have earned.
 
#8
#8
Tax cuts did not get us in this situation, out of control spending and the housing bubble got us here. Bush is responsible for much of what got us here. He refuse to stand up to the Democratic Congress that decreed every American deserved a home regardless of their ability to pay. He failed to reign in spending during the end of his presidency. He proped up sick businesses on the tax payer's dime. Since Obama has become president, he too has continued to spend money like it's his job, continues to try to let people stay in homes they can't afford and is bleeding the few people that still pay taxes dry. If government woul live within it's means like is expected of every American we could get out of this mess, but raising taxes will only prolong our situation.
Posted via VolNation Mobile
 
#9
#9
allvol123 said:
Why do you ask a question that shows you view the world from the perspective that people are fortunate for whatever the government allows them to keep of the money they have earned.
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Was that intended for me?
 
#10
#10
So, let's look at things in perspective here...

1. Bush spent more and cut taxes. This is a basic no-no in economics. You can't spend more than you make.

2. Obama, doesn't renew the tax cuts that Bush signed in to law, but yet continues to spend more than Bush did, and now is looking at raising taxes and making new ones. Still a basic no-no in economics.

When will ANYONE learn that you can't spend more than you make for any length of time, before you have to give up necessities to pay your bills?? Why can't FREAKING people understand this. It's such a simple concept.
 
#13
#13
I like keeping the money that I earn and not sending it to some jackass who has never worked a day in his life.

Economies are cyclical. There are high points and there are low points. You will find about every 8 to 10 years there is a low point. This recession was going to happen but was made worse by the credit/banking crisis. What made the banking crisis what it is? Tax cuts? No. Irresponsibility on the part of banks and on the part of borrowers. Credit was much too easy to get and folks were able to borrow far beyond their capability of paying back. Blame whoever you want, but the banks while being responsible were nevertheless encouraged in this practice by our federal government.

Tax cuts in general stimulate economies. Tax cuts mean more money in circulation, more money in investment.
 
#14
#14
Velo Vol said:
I remember listening to comedian Rush Limbaugh during the summer of 2008. At the time he was trying to prop up the Bush economic legacy and said that the economy at that time (just before the financial crash) was in better shape than it had ever been in the 1990s. And, of course, the reason was because of the Bush tax cuts.

Fast forward almost two years: the tax rates haven't changed, yet the economy is now stuck in the gutter. The solution, according to Limbaugh? More tax cuts!

My question is: if the Bush tax cuts were responsible for the economic awesomeness of the mid-00s, why did they fail to prevent the Great Recession? Why do we now need even more tax cuts? Why didn't Bush and the GOP simply set the rates at the perpetual awesomeness level when they cut the rates before?
Click to expand...


:lolabove::lolabove::lolabove::lolabove::lolabove::lolabove::lolabove::lolabove::lolabove::lolabove::lolabove:

I love marginalization!

Bush is a hack and Obama is a hack. No one can defend either one them.
 
#15
#15
DAVOL said:
Why does most everyone on here act as if the government is some foreign entity these people did not appoint themselves they were voted in, sure you may have voted for someone other than who is in office but you had your say and if you did not vote then shut the hell up.If you do not like how the gov. is operating then pick yourself up by the bootstraps and work harder to get your candidates elected instead of constantly whining on V.N.
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What are you talking about?

I'll complain whenever and wherever I want too.

I don't care if an @$$ or an elephant are in power, if they are foolish they should be called out.

I know you pray to gov't every day for your well being but others like me prefer freedom.

:hi:
 
#16
#16
Godfatha said:
I like keeping the money that I earn and not sending it to some jackass who has never worked a day in his life.

Economies are cyclical. There are high points and there are low points. You will find about every 8 to 10 years there is a low point. This recession was going to happen but was made worse by the credit/banking crisis. What made the banking crisis what it is? Tax cuts? No. Irresponsibility on the part of banks and on the part of borrowers. Credit was much too easy to get and folks were able to borrow far beyond their capability of paying back. Blame whoever you want, but the banks while being responsible were nevertheless encouraged in this practice by our federal government.

Tax cuts in general stimulate economies. Tax cuts mean more money in circulation, more money in investment.
Click to expand...

Actually more accurate that the banks were instructed to loan money for housing in red zones starting with the Clinton administration.
 
#17
#17
To increase aggregate demand and/or stop deflation.

Coexists with increases and decreases in spending, interest rates, and countercyclical policy.
 
#18
#18
DAVOL said:
Why does most everyone on here act as if the government is some foreign entity these people did not appoint themselves they were voted in, sure you may have voted for someone other than who is in office but you had your say and if you did not vote then shut the hell up.If you do not like how the gov. is operating then pick yourself up by the bootstraps and work harder to get your candidates elected instead of constantly whining on V.N.
Click to expand...

I have never voted for a candidate on for the federal level who won, and I vote every election. I am faultless.
 
#20
#20
If the government had to be run like any true business, it would have gone bankrupt decades ago... way too much frivolous spending with too little accountability. It is the only institution I can think of that can increase revenues (i.e. taxes) whenever it feels the need.

Just once I'd like to see an administration take on the challenge (as most businesses do) of needing to reduce expenses (spending), set a reasonable 3-5 year budget based on a forecasted income that is flat or down, and stick with it and actually show improved margins at the end of the 3-5 year plan.
 
#22
#22
Velo Vol said:
Fast forward almost two years: the tax rates haven't changed, yet the economy is now stuck in the gutter. The solution, according to Limbaugh? More tax cuts!
Click to expand...

i think you just lost your cause and effect degree.
 
#23
#23
Since this isn't talk radio, we can actually analyze this piece by piece:

(1) Does anyone agree with Limbaugh that the Bush tax rates spurred great economic growth from 2003-2006/7?

Because if no one even buys that there's no point in going further.
 
#24
#24
Velo Vol said:
Since this isn't talk radio, we can actually analyze this piece by piece:

(1) Does anyone agree with Limbaugh that the Bush tax rates spurred great economic growth from 2003-2006/7?

Because if no one even buys that there's no point in going further.
Click to expand...

I do agree with Rush, but the fact that Bush and Congress did not cut spending at the same time it hurt us in the long run.
 
#25
#25
Velo Vol said:
Since this isn't talk radio, we can actually analyze this piece by piece:

(1) Does anyone agree with Limbaugh that the Bush tax rates spurred great economic growth from 2003-2006/7?

Because if no one even buys that there's no point in going further.
Click to expand...

of course it spurred great economic growth. 9/11 and dot com bubble, yet we still had 4% gdp growth. the deficit is a different animal.
 
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