Obama: Not Extending Middle Class Tax Cuts Could Hurt Growth

[Iowa10000]

The rich are not the problem, it's the idiots (many on this board) who think they need to provide them with more than they already get. I'm sure there are some in the top 1% who feel they are being taken advantage of, but most are very happy to be able to make what they do and have what they do.

The biggest problem is people are pissed because people who need help in life are getting it and it ain't them. They somehow think that what goes to help people who need help would somehow end up in their pockets if it didn't go to help these people. they see themselves as hard workers who have done everything for themselves and they resent people who they feel haven't accomplished as much in life as they have, but are being helped.

What's so sad is 99.99 % of the people on this board are not in the top 1% or the top 5% or the top 10% but really think they deserve to be there and if it wasn't for people like those in the bottom 50% of income's they would be. But it isn't in the cards so they have to have someone to blame for their own failures in LIFE.

Rich people don't have a real problem, it's the wannabee crybabies that do.

Oh by the way the bottom 20% donate at a much higher % of their disposable income than any other group. and they don't demand to be noticed for it.

 

[Rozman]

Why can't we use the unspent stimulus money to extend the tax cuts for all for two more years? Then deal with it again in 2012?

 

[Foxfyre]

Why can't we use the unspent stimulus money to extend the tax cuts for all for two more years? Then deal with it again in 2012?

It's a misnomer that you have to pay for the extension at all. All that is necessary to do an extension is to extend it. To fail to do this will take so much money out of an already badly stressed economy that it will almost certainly cost us in GDP and additional unemployment insurance etc. which would be more than any extra taxes they could possibly collect. Tax capital less and it is much more available to all. Tax it more and it flees somewhere else. That is why the right kind of tax cuts generates revenues for the treasury by stimulating economic activity. Increase those same taxes and you depress that same activity.

The main problem with short-run stabilization; i.e. extending the tax cuts for two years or less, is that it doesn't produce long-run efficiency. Business does planning, especially capital expenditures, for two to five years or more in advance. It needs certainty about taxes, rules, and regulations for the long term. The Administration's ever-evolving policy initiatives mostly serve to keep assets and capital frozen and unavailable to anybody.

 

[boedicca]

If raising taxes on those who make up the bulk of consumer spending is bad for growth, so is raising taxes on those who create the jobs to employ them and pay a their salaries for them to spend on consumer purchases.

Just frelling stating the obvious for anyone with even a rudimentary understanding of economics.

 

[boedicca]

Why can't we use the unspent stimulus money to extend the tax cuts for all for two more years? Then deal with it again in 2012?

Because that would take away to big pot of money that Obama has been using to pay off his cronies.

 

[DaGoose]

If raising taxes on those who make up the bulk of consumer spending is bad for growth, so is raising taxes on those who create the jobs to employ them and pay a their salaries for them to spend on consumer purchases.

Just frelling stating the obvious for anyone with even a rudimentary understanding of economics.

What you're suggesting is another round of the failed "Trickle Down" economic policy.

Here's a "rudimentary understanding of economics" for you.

Allow the tax cuts for the rich expire but leave the middle class tax cuts alone. That will increase consumer spending which in turn will create demand for products. The demand for products will lead to increased corporate profits and increased job creation to keep up with that demand.

That way the "rich get richer" through Trickle UP Economics.