Do Tax Cuts Stimulate the Economy?

[Meister]

Yes it does. Just because you don't know it does, doesn't mean it doesn't work.

It is a fact stupid. Spending one dollar gets you $1.80 back and giving a $1 tax cut only gets you back $1.03. I don't remember the exact dollar amounts, but spending is way more stimulitive than tax breaks. You are a fool for not knowing that. Continue to say the wrong thing until someone else comes and corrrects you. I love it.

And we need to spend on America now anyways. Bush ignored America and waged a war for $10 billion a month for 6 years. What a fucking waste. All that money went to Haloburton and Blackwater, who both moved their HQ's to Dubai. You republicans are so dumb, you don't even realize the GOP sold America out in the last 8 years. And you defended them all until the last year, then you distanced yourselves from Bush, and now you are falling back in line. What a little bitch you must be.

Time to pay for the Iraq war.

PS. If you really want "less spending", then we must end the Federal Reserve. If you aren't on board with that yet, then it is time to wake up and get on board. Because the interest we pay on the debt puts us further and further into debt.

Ron Paul wants to audit the Fed.

Last week (the week of February 23, 2009) was a very productive one for Ron Paul. On Monday he posted, "On Transparency of the Fed," which applauded the Fed's recent initiatives to enhance its transparency and accountability. However, Paul went on to say, "But with so much of the Fed’s business cloaked in secrecy, these latest initiatives will not even scratch the surface of the Fed’s opaque operations." Furthermore, according to Paul, "People are demanding answers and explanations for our economic malaise, and we should settle for nothing less than the whole truth on monetary policy."

Therefore, Paul announced:





"The first step is to pass legislation I will soon introduce requiring an audit of the Federal Reserve so we can at least get an accurate picture of what is happening with our money. If this audit reveals what I suspect, and Congress has finally had enough, they can also pass my legislation to abolish the Federal Reserve and put control of the economy’s lifeblood, the currency, back where it Constitutionally belongs. If Congress refuses to do these two things, the very least they could do is repeal legal tender laws and allow people to choose a different currency in which to operate. If the Fed refuses to open its books to an audit, and Congress refuses to demand this, the people should not be subject to the whims of this secretive and incompetent organization."



HR 1207- Auditing the Federal Reserve

You can call me stupid all you want...but your wrong...We are not spending just money...we are spending...(I will put it in bold again for you to see) borrowed money Sealy...that means we don't even have the money OK? Next you think that it will work...It's been tried before, and hasn't worked...now my question to you SEALY is show me where spending without reducing taxes has brought any country in the world out of a recession?...Come on Sealy you said it...now man up and show me. I did that with being civil to you Sealy..no name calling...just civil...try it sometime.

PS in my earlier post didn't I say that it took tax breaks, and less spending??? Didn't I say that Sealy???

Can you show me when cutting taxes got us out of a recession? You first.

And what about FDR's New Deal?

And why didn't you bitch this loud about all the Iraq spending?

You thought it was necessary? Will you admit now that you were wrong about Iraq?

Because that's why we don't have the money.

Sealy first of all...I never said we should have gone into Iraq. I wasn't for it...but Bush didn't listen to me. That Is water under the bridge.
FDR's New Deal kept us in a depression about 6-7 years longer than it needed to be. WWII is was brought us out of the depression.
Cutting taxes...and this is where you won't acknowledge what I said...reduce spending.
Bush reduced taxes and got us out of a mini recession which could have been worse. He should have reduced spending, also.
Reagan cut spending by 4% over Jimmiy Carter along with reduced taxes. That was a bad recession we were in at the time, Sealy.
Like I'm trying to get across to you is...Reduce taxes, along with reduced spending. It's a tried and true solution.
You still haven't given me the answer to my question about spending our way out of a recession.

 

[Kevin_Kennedy]

I don't understand how people can say reduced spending, and reduced taxes gets us out of a recession but then say that it was WW2 that got us out of the Great Depression. WW2 didn't get us out of the Great Depression, we got out of the Great Depression after WW2 when government spending was reduced and the government stranglehold on the economy was lessened.

 

[editec]

I don't understand how people can say reduced spending, and reduced taxes gets us out of a recession but then say that it was WW2 that got us out of the Great Depression. WW2 didn't get us out of the Great Depression, we got out of the Great Depression after WW2 when government spending was reduced and the government stranglehold on the economy was lessened.

You don't understand how people can say things that make absolutely no sense, Kevin?

Neither do I, sport, neither do I.

I think it all starts out because money is so much a part of our lives, that most people think it's real in itself.

They don't appear to understand that money is in itself, nothing but a way of keeping score.

Hence they believe that all this national debt means that the American people were bad for spending instead of accepting the fact that the market was manipulating debt in ways designed to make it impossible for people (and governments, and even corporations) NOT get get into paper debt.

We're 11 trillion dollars in debt?

To whom, exactly, where did they get that much money to lend to us?

Seriously...

Our specie is worth only as much as this nation is productive.

ARe we no longer productive?

This is a fixed game, Kev, I think we both know that.

 

[Meister]

I don't understand how people can say reduced spending, and reduced taxes gets us out of a recession but then say that it was WW2 that got us out of the Great Depression. WW2 didn't get us out of the Great Depression, we got out of the Great Depression after WW2 when government spending was reduced and the government stranglehold on the economy was lessened.

FDR's socialist agenda didn't reduce spending, Kevin. It was the mass amount of demand for products, and employment that WWII created, that got us out of the depression. Yes, we did spend more at the time, but it was because of demand, and money in Americans pocket.
Reduced spending from the federal government, and reduced taxes on Americans will help the economy. It's not one, or the other, it has to be both. Revenue from what people will spend, because they have more money in their savings or checking accounts. We have supply right now...we just don't have the demand because of unemployment, fear of where this recession is going.

 

[Kevin_Kennedy]

I don't understand how people can say reduced spending, and reduced taxes gets us out of a recession but then say that it was WW2 that got us out of the Great Depression. WW2 didn't get us out of the Great Depression, we got out of the Great Depression after WW2 when government spending was reduced and the government stranglehold on the economy was lessened.

FDR's socialist agenda didn't reduce spending, Kevin. It was the mass amount of demand for products, and employment that WWII created, that got us out of the depression. Yes, we did spend more at the time, but it was because of demand, and money in Americans pocket.
Reduced spending from the federal government, and reduced taxes on Americans will help the economy. It's not one, or the other, it has to be both. Revenue from what people will spend, because they have more money in their savings or checking accounts. We have supply right now...we just don't have the demand because of unemployment, fear of where this recession is going.

Government spending, whether it's in the form of a "New Deal-esque" program or it's war spending, is harmful to the economy. It wasn't until after WW2 when Americans began producing things that people actually needed or wanted, and, as I said before, the government stopped spending as much and lessened it's stranglehold over the economy that we got out of the Great Depression.

 

[Maple]

Econ 101

1. I work and pay taxes.
a. Out of what's left of my paycheck I
1. Pay bills.
2. Spend money on clothing, food, entertainment.
3. Hopefully save for a rainy day.
4. Invest for retirement, college for kids etc.

2. If the government takes more of my money for taxes.

A. I have trouble paying my bills.
B. Have to cut back on food, clothing and entertainment.
C. Can't save a dime.
D. Can't invest a dime.

3. What happens to local business's when I pay more taxes.

A. They lose money.
B. They can't spend, save or invest.
C. They lay off employee's.
D. They fail and shut their doors.

SMALL BUSINESS EMPLOYS WELL OVER 80% OF AMERICANS AND THERE WAS NOT ONE RED CENT IN THIS SO-CALLED STIMULUS PACKAGE IN THE FORM OF TAX BREAKS FOR THEM AND I AS A MIDDLE CLASS AMERICAN MIGHT SEE ALL OF $12.00 PER WEEK.

Now I want your answer to this and you tell me how government by taking more of my money will stimulate this economy and make things better for everyone, not just government employees.

 

[Care4all]

Econ 101

1. I work and pay taxes.
a. Out of what's left of my paycheck I
1. Pay bills.
2. Spend money on clothing, food, entertainment.
3. Hopefully save for a rainy day.
4. Invest for retirement, college for kids etc.

2. If the government takes more of my money for taxes.

A. I have trouble paying my bills.
B. Have to cut back on food, clothing and entertainment.
C. Can't save a dime.
D. Can't invest a dime.

3. What happens to local business's when I pay more taxes.

A. They lose money.
B. They can't spend, save or invest.
C. They lay off employee's.
D. They fail and shut their doors.

SMALL BUSINESS EMPLOYS WELL OVER 80% OF AMERICANS AND THERE WAS NOT ONE RED CENT IN THIS SO-CALLED STIMULUS PACKAGE IN THE FORM OF TAX BREAKS FOR THEM AND I AS A MIDDLE CLASS AMERICAN MIGHT SEE ALL OF $12.00 PER WEEK.

Now I want your answer to this and you tell me how government by taking more of my money will stimulate this economy and make things better for everyone, not just government employees.

IF government was taking MORE of YOUR money then you are absolutely correct, because you have limited funds that cover your basic living and very little to cover your pursuit of happiness....!

But government is NOT taking more of your money, you are one of the ones that gets a tax break....the $624 bucks a year that you dismissed as nothing it seems....will give you more of your money to spend on living.....if you were in the middle of the 15% tax bracket and with no children, that is $24 bucks more than you got from all the Bush tax cuts....I digress....

the small business stimulus and tax breaks were brought out yesterday, so there is a focus on small business from this administration, THANK GOD! And I agree this is a very important part of getting us going again!

Care

 

[Maple]

Sheila, when you invest your money you invest in companies for growth of your money. In order for businesses to keep your investment they had better be creating products and therefore creating jobs or they will lose that investment.The investor is investing to grow his money and if the business is not growning the investor has nothing to gain, it is flat. Investors look for opportunity to grow their money, if the company that they are looking at does not have growth potential they don't invest. You would be better off keeping it in a pass book savings account. I am an investor and I don't invest to make the CEO wealthy, I invest for my own monetary gain.

 

[Care4all]

I don't understand how people can say reduced spending, and reduced taxes gets us out of a recession but then say that it was WW2 that got us out of the Great Depression. WW2 didn't get us out of the Great Depression, we got out of the Great Depression after WW2 when government spending was reduced and the government stranglehold on the economy was lessened.

FDR's socialist agenda didn't reduce spending, Kevin. It was the mass amount of demand for products, and employment that WWII created, that got us out of the depression. Yes, we did spend more at the time, but it was because of demand, and money in Americans pocket.
Reduced spending from the federal government, and reduced taxes on Americans will help the economy. It's not one, or the other, it has to be both. Revenue from what people will spend, because they have more money in their savings or checking accounts. We have supply right now...we just don't have the demand because of unemployment, fear of where this recession is going.

Government spending, whether it's in the form of a "New Deal-esque" program or it's war spending, is harmful to the economy. It wasn't until after WW2 when Americans began producing things that people actually needed or wanted, and, as I said before, the government stopped spending as much and lessened it's stranglehold over the economy that we got out of the Great Depression.

the government began one of its largest social programs after the war that is the biggest factor in the growth of the middle class in America, the GI BILL....funding college educations, veterans medical benefits and hospitals throughout the country, along with guaranteeing the down payment for homes for all of them that wanted one....

In addition to this you had spending on building our country's federal highways continuing and spending on Social security just beginning...

i don't believe spending stopped by the government as you are stating Kevin.

Care

 

[Maple]

Care, I saw your response to my post, keep in mind that Bush reduced taxes across the board after 9-11, those tax cuts will expire in 2010. They are considerably more than a measly $12 a week, which unfortunately we will realize all too soon.

 

[Maple]

Care, Bush cut taxes across the board, they are considerably more than $12 per week, they are set to expire in 2010. The democratics were opposed to this tax cut then and they are jumping for joy about this expiration date.

 

[Maple]

Kevin that is very good insight, it was not the New Deal by FDR that brought us out of the depression, it was World War 11. A very good historical read is the " The Forgotton Man." It is an historical account of that time period, talks about all the policies, business, union even Soviet Russia and Stalin which some in his cabinet thought was the way to go until they say the goulags.

 

[Kevin_Kennedy]

FDR's socialist agenda didn't reduce spending, Kevin. It was the mass amount of demand for products, and employment that WWII created, that got us out of the depression. Yes, we did spend more at the time, but it was because of demand, and money in Americans pocket.
Reduced spending from the federal government, and reduced taxes on Americans will help the economy. It's not one, or the other, it has to be both. Revenue from what people will spend, because they have more money in their savings or checking accounts. We have supply right now...we just don't have the demand because of unemployment, fear of where this recession is going.

Government spending, whether it's in the form of a "New Deal-esque" program or it's war spending, is harmful to the economy. It wasn't until after WW2 when Americans began producing things that people actually needed or wanted, and, as I said before, the government stopped spending as much and lessened it's stranglehold over the economy that we got out of the Great Depression.

the government began one of its largest social programs after the war that is the biggest factor in the growth of the middle class in America, the GI BILL....funding college educations, veterans medical benefits and hospitals throughout the country, along with guaranteeing the down payment for homes for all of them that wanted one....

In addition to this you had spending on building our country's federal highways continuing and spending on Social security just beginning...

i don't believe spending stopped by the government as you are stating Kevin.

Care

I didn't say that the government stopped spending, I said they reduced spending.

 

[Kevin_Kennedy]

Kevin that is very good insight, it was not the New Deal by FDR that brought us out of the depression, it was World War 11. A very good historical read is the " The Forgotton Man." It is an historical account of that time period, talks about all the policies, business, union even Soviet Russia and Stalin which some in his cabinet thought was the way to go until they say the goulags.

You haven't read my posts fully, apparently. The New Deal didn't pull us out of the Great Depression, but neither did World War 2.

 

[Maple]

Kevin read the book " The Forgotten Man," it is an excellent historical account of that time period. It goes deeply into philosophy,Hoover, Roosevelt, unions, business even Stalin's soviet Russia. FDR's New Deal may have helped the pain but it is believed now that his policies prolonged the depression. We actually did come out of the depression during World War 11, men went to war, women worked in the factories making planes and ships. There were so few men during that time period who were not at war that they had women's pro baseball teams. Remember the movie, " A team of their own." That's a true story.

 

[Care4all]

Government spending, whether it's in the form of a "New Deal-esque" program or it's war spending, is harmful to the economy. It wasn't until after WW2 when Americans began producing things that people actually needed or wanted, and, as I said before, the government stopped spending as much and lessened it's stranglehold over the economy that we got out of the Great Depression.

the government began one of its largest social programs after the war that is the biggest factor in the growth of the middle class in America, the GI BILL....funding college educations, veterans medical benefits and hospitals throughout the country, along with guaranteeing the down payment for homes for all of them that wanted one....

In addition to this you had spending on building our country's federal highways continuing and spending on Social security just beginning...

i don't believe spending stopped by the government as you are stating Kevin.

Care

I didn't say that the government stopped spending, I said they reduced spending.

well, i can see that then...it would give confidence to the public and businesses to see the government not having to spend as much(wuld appear the crisis is over) and not spending as much...(would give hope that they've all come to their senses and open up the money for the private sector)

and when these bailouts stop, and this outside of budget spending stops, this should bring confidence as well....

we have got to be getting CLOSE you would think to no more bailouts? gees i sure hope so!

 

[Kevin_Kennedy]

I think we've got more spending packages or bailouts in our future. I don't agree with Bernanke that we'll be out of this by the end of this year, and I think that they've spent so much money now that they'll at least attempt to spend more in an effort to save face.

 

[Kevin_Kennedy]

Kevin read the book " The Forgotten Man," it is an excellent historical account of that time period. It goes deeply into philosophy,Hoover, Roosevelt, unions, business even Stalin's soviet Russia. FDR's New Deal may have helped the pain but it is believed now that his policies prolonged the depression. We actually did come out of the depression during World War 11, men went to war, women worked in the factories making planes and ships. There were so few men during that time period who were not at war that they had women's pro baseball teams. Remember the movie, " A team of their own." That's a true story.

Maple, read the book "Economics in One Lesson" by Henry Hazlitt. We did not come out of the Depression during WW2 because of the massive spending and inflation necessary to finance the war, and America wasn't producing things that Americans needed on a very large scale. Sure unemployment went down, but that's because so many were drafted and sent off to die overseas not because they were doing anything productive. War time spending is always destructive to the economy.

 

[Hop Head]

Tax policy, if used properly, can have a strong effect on people's behavior, and therefore, the economy. However, I'm not convinced that it can be simplified to just "if you lower taxes it will stimulate the economy". Certain tax cuts will stimulate certain parts of the economy, but other will do nothing but add to the national deficit.

 

[glockmail]

....it was World War 11. ...

Holly shit we're up to eleven already!!??