Do Tax Cuts Stimulate the Economy?

[rayboyusmc]

Why Tax Cuts Hurt the Economy
by Russ Beaton

Never have so many been fooled for so long by an idea so totally lacking in economic logic, facts and theory. I am speaking of the religiously held and seldom questioned premise that (are you ready?): TAX CUTS STIMULATE THE AMERICAN ECONOMY.

I’m fully aware that I risk excommunication from the Church of Economic Science when I argue exactly the opposite: Tax cuts actually hurt the economy. It isn’t just that they don’t help, or that they’re ineffective—THEY REALLY HURT!

I can hear you thinking (even if your values bias makes you otherwise eager to agree): “Here comes the bleeding heart liberal, anti-trickle down, do something for humanity mantra.” No, indeed. I’m talking data here—numbers and empirical evidence. Check your values at the door and come on in.

Let’s start by examining conventional wisdom. You know the drill—Cut taxes. Leave the money in the hands of the people rather than the depraved clutches of the government. That way the people, being good red-blooded (Visa) card-carrying Americans, will dutifully spend the money. This stimulates economic activity, creates jobs and we’ll all live happily ever after. Why, the activity thus stimulated may be so vigorous that collection of taxes on this newly stimulated activity will soon exceed the amount of the original tax cuts! It’s the economic version of perpetual motion.

The Idolatry of Ideology-Why Tax Cuts Hurt the Economy by Russ Beaton

 

[Meister]

Why Tax Cuts Hurt the Economy
by Russ Beaton

Never have so many been fooled for so long by an idea so totally lacking in economic logic, facts and theory. I am speaking of the religiously held and seldom questioned premise that (are you ready?): TAX CUTS STIMULATE THE AMERICAN ECONOMY.

I’m fully aware that I risk excommunication from the Church of Economic Science when I argue exactly the opposite: Tax cuts actually hurt the economy. It isn’t just that they don’t help, or that they’re ineffective—THEY REALLY HURT!

I can hear you thinking (even if your values bias makes you otherwise eager to agree): “Here comes the bleeding heart liberal, anti-trickle down, do something for humanity mantra.” No, indeed. I’m talking data here—numbers and empirical evidence. Check your values at the door and come on in.

Let’s start by examining conventional wisdom. You know the drill—Cut taxes. Leave the money in the hands of the people rather than the depraved clutches of the government. That way the people, being good red-blooded (Visa) card-carrying Americans, will dutifully spend the money. This stimulates economic activity, creates jobs and we’ll all live happily ever after. Why, the activity thus stimulated may be so vigorous that collection of taxes on this newly stimulated activity will soon exceed the amount of the original tax cuts! It’s the economic version of perpetual motion.

The Idolatry of Ideology-Why Tax Cuts Hurt the Economy by Russ Beaton

yeah I suppose what JFK did hurt the economy, just like what happened when Reagan cut income, and captial tax. I won't mention Bush because you get too agitated about that. Personally, I feel that with tax cuts puts more money in my pocket where I can spend the money on what I need, plus help stimulate the economy by me putting it back in. On the otherside of this coin,the government takes it out of my pocket (which leaves me not spending on what I need) to them spending on earmarks that has no benefit to me, and maay just benefit a small minority...which by the way will not get us out of a recession.
Ray deny it as you will....just sayin...

 

[xsited1]

Why Tax Cuts Hurt the Economy
by Russ Beaton

...

The Idolatry of Ideology-Why Tax Cuts Hurt the Economy by Russ Beaton

Awesome troll post!

 

[Skull Pilot]

So tax increases stimulate the economy??

 

[Toro]

Tax cuts hurt the economy only if, over the long-run, spending is not cut. Otherwise, tax cuts help the economy.

But supply-siders must realize that cutting taxes without cutting spending is merely Keynsianism in reverse.

 

[Againsheila]

Why Tax Cuts Hurt the Economy
by Russ Beaton

Never have so many been fooled for so long by an idea so totally lacking in economic logic, facts and theory. I am speaking of the religiously held and seldom questioned premise that (are you ready?): TAX CUTS STIMULATE THE AMERICAN ECONOMY.

I’m fully aware that I risk excommunication from the Church of Economic Science when I argue exactly the opposite: Tax cuts actually hurt the economy. It isn’t just that they don’t help, or that they’re ineffective—THEY REALLY HURT!

I can hear you thinking (even if your values bias makes you otherwise eager to agree): “Here comes the bleeding heart liberal, anti-trickle down, do something for humanity mantra.” No, indeed. I’m talking data here—numbers and empirical evidence. Check your values at the door and come on in.

Let’s start by examining conventional wisdom. You know the drill—Cut taxes. Leave the money in the hands of the people rather than the depraved clutches of the government. That way the people, being good red-blooded (Visa) card-carrying Americans, will dutifully spend the money. This stimulates economic activity, creates jobs and we’ll all live happily ever after. Why, the activity thus stimulated may be so vigorous that collection of taxes on this newly stimulated activity will soon exceed the amount of the original tax cuts! It’s the economic version of perpetual motion.

The Idolatry of Ideology-Why Tax Cuts Hurt the Economy by Russ Beaton

yeah I suppose what JFK did hurt the economy, just like what happened when Reagan cut income, and captial tax. I won't mention Bush because you get too agitated about that. Personally, I feel that with tax cuts puts more money in my pocket where I can spend the money on what I need, plus help stimulate the economy by me putting it back in. On the otherside of this coin,the government takes it out of my pocket (which leaves me not spending on what I need) to them spending on earmarks that has no benefit to me, and maay just benefit a small minority...which by the way will not get us out of a recession.
Ray deny it as you will....just sayin...

JFK cut taxes on the middle class, the people who spend the money, that's why his tax cuts worked. Cutting taxes on the wealthy only helps the wealthy get richer, it doesn't help the economy because they don't spend the money, they invest it.

 

[Meister]

The Idolatry of Ideology-Why Tax Cuts Hurt the Economy by Russ Beaton

yeah I suppose what JFK did hurt the economy, just like what happened when Reagan cut income, and captial tax. I won't mention Bush because you get too agitated about that. Personally, I feel that with tax cuts puts more money in my pocket where I can spend the money on what I need, plus help stimulate the economy by me putting it back in. On the otherside of this coin,the government takes it out of my pocket (which leaves me not spending on what I need) to them spending on earmarks that has no benefit to me, and maay just benefit a small minority...which by the way will not get us out of a recession.
Ray deny it as you will....just sayin...

JFK cut taxes on the middle class, the people who spend the money, that's why his tax cuts worked. Cutting taxes on the wealthy only helps the wealthy get richer, it doesn't help the economy because they don't spend the money, they invest it.

Your going to have to trust me on this Sheila...when the rich invest their money, it does help the economy. It helps create jobs with the businesses they invest in. Job creation is where the employees make their money. If the businesses have 401K's, or IRA's the employee can invest for their retirement, and help build businesses to create more jobs. I know, I know, you didn't look at that angle. But, that's what I'm here for. I'm here to help you see the other side of the coin that the left failed to show you....Your welcome.

 

[Againsheila]

yeah I suppose what JFK did hurt the economy, just like what happened when Reagan cut income, and captial tax. I won't mention Bush because you get too agitated about that. Personally, I feel that with tax cuts puts more money in my pocket where I can spend the money on what I need, plus help stimulate the economy by me putting it back in. On the otherside of this coin,the government takes it out of my pocket (which leaves me not spending on what I need) to them spending on earmarks that has no benefit to me, and maay just benefit a small minority...which by the way will not get us out of a recession.
Ray deny it as you will....just sayin...

JFK cut taxes on the middle class, the people who spend the money, that's why his tax cuts worked. Cutting taxes on the wealthy only helps the wealthy get richer, it doesn't help the economy because they don't spend the money, they invest it.

Your going to have to trust me on this Sheila...when the rich invest their money, it does help the economy. It helps create jobs with the businesses they invest in. Job creation is where the employees make their money. If the businesses have 401K's, or IRA's the employee can invest for their retirement, and help build businesses to create more jobs. I know, I know, you didn't look at that angle. But, that's what I'm here for. I'm here to help you see the other side of the coin that the left failed to show you....Your welcome.

Nope, investing their money doesn't necessarily create jobs anymore than giving $billions to the banks helped people from being foreclosed on. It just makes the rich, richer and that doesn't help anybody but the rich.

Now, if you want to put that money into job creation, do so, CREATE jobs.....don't give tax breaks to the already obscenely wealthy.

 

[mash107]

Tax cuts hurt the economy only if, over the long-run, spending is not cut. Otherwise, tax cuts help the economy.

But supply-siders must realize that cutting taxes without cutting spending is merely Keynsianism in reverse.

agreed

overall, it's spending that hurts us, not the amount taxed. going from 39% to 35% for the top tier tax rate or vice versa won't have much of an effect on an economy unless spending is cut.

 

[Meister]

JFK cut taxes on the middle class, the people who spend the money, that's why his tax cuts worked. Cutting taxes on the wealthy only helps the wealthy get richer, it doesn't help the economy because they don't spend the money, they invest it.

Your going to have to trust me on this Sheila...when the rich invest their money, it does help the economy. It helps create jobs with the businesses they invest in. Job creation is where the employees make their money. If the businesses have 401K's, or IRA's the employee can invest for their retirement, and help build businesses to create more jobs. I know, I know, you didn't look at that angle. But, that's what I'm here for. I'm here to help you see the other side of the coin that the left failed to show you....Your welcome.

Nope, investing their money doesn't necessarily create jobs anymore than giving $billions to the banks helped people from being foreclosed on. It just makes the rich, richer and that doesn't help anybody but the rich.

Now, if you want to put that money into job creation, do so, CREATE jobs.....don't give tax breaks to the already obscenely wealthy.

If their investing their money...it's helping the economy. Don't agree with me, that's your right...but don't tell me I'm wrong.

 

[xsited1]

Tax cuts hurt the economy only if, over the long-run, spending is not cut. Otherwise, tax cuts help the economy.

But supply-siders must realize that cutting taxes without cutting spending is merely Keynsianism in reverse.

Not exactly. You only have to cut spending if tax revenues don't equal expenditures. In some cases, reducing taxes can actually increase tax revenues.

 

[Mad Scientist]

Do tax cuts stimulate the economy?

Perhaps you could tell us what else besides tax cuts would stimulate the economy RayBoy? Really, is there anything else? The economy won't turn around if the Government just tells us to spend money we obviously don't have. And government spending won't stimulate the economy beyond that fiscal year. You have to make the economy self supporting again and that comes by putting money back into the hands of consumers and business by means of tax cuts.

Our GDP is the total amount of goods and services created by our economy in dollar terms.
People have less money to spend when taxes are raised.
The GDP goes down as a result and less tax money is collected by the Government, which is what is happening now.
If taxes are cut, then the consumers and businesses have more to spend in the economy thus providing a "Stimulus".
Less Money = Less Economic Activity Which = Less Taxes Collected.
(Negative Growth or Recession)
More Money = More Economic Activity Which = More Taxes Collected.
(Growth or Boom)

But tax cuts also have to be implemented with government spending cuts on the state and federal level else deficits will pile up.

 

[Toro]

Tax cuts hurt the economy only if, over the long-run, spending is not cut. Otherwise, tax cuts help the economy.

But supply-siders must realize that cutting taxes without cutting spending is merely Keynsianism in reverse.

Not exactly. You only have to cut spending if tax revenues don't equal expenditures. In some cases, reducing taxes can actually increase tax revenues.

In some cases, that is true. But it is not for most cases in the United States, and especially not income taxes at current rates.

 

[Harry Dresden]

JFK cut taxes on the middle class, the people who spend the money, that's why his tax cuts worked. Cutting taxes on the wealthy only helps the wealthy get richer, it doesn't help the economy because they don't spend the money, they invest it.

investing money does not help the economy....mmm.....ok got it.....whats your next point...

 

[Harry Dresden]

Now, if you want to put that money into job creation, do so, CREATE jobs.....don't give tax breaks to the already obscenely wealthy.

somebody making 250,000 to a million a year are not obscenely wealthy Shiela.....if you dont believe me...ask Miester,that is what he is here for....

 

[glockmail]

.....
If their investing their money...it's helping the economy. Don't agree with me, that's your right...but don't tell me I'm wrong.

Good for the economy or not (of course it is), someone needs to tell me what's "fair" about progressive taxation.

 

[jeffrockit]

Now, if you want to put that money into job creation, do so, CREATE jobs.....don't give tax breaks to the already obscenely wealthy.

somebody making 250,000 to a million a year are not obscenely wealthy Shiela.....if you dont believe me...ask Miester,that is what he is here for....

Wealth envy is one of the top 10 attacks of the left. It is so easy to get the sheep on your side especially when the economy is failing. Why should people have to work hard and give up more free time for their money when all they have to do is wait for the government to re-distribute the wealth. High achievers are a major target of the left and it makes you wonder if it is because they have so few.
What happens when the wealthy run out of money and the poor are still waiting with their hands out without any skills? Something to think about.

 

[Old Rocks]

Your going to have to trust me on this Sheila...when the rich invest their money, it does help the economy. It helps create jobs with the businesses they invest in. Job creation is where the employees make their money. If the businesses have 401K's, or IRA's the employee can invest for their retirement, and help build businesses to create more jobs. I know, I know, you didn't look at that angle. But, that's what I'm here for. I'm here to help you see the other side of the coin that the left failed to show you....Your welcome.

Nope, investing their money doesn't necessarily create jobs anymore than giving $billions to the banks helped people from being foreclosed on. It just makes the rich, richer and that doesn't help anybody but the rich.

Now, if you want to put that money into job creation, do so, CREATE jobs.....don't give tax breaks to the already obscenely wealthy.

If their investing their money...it's helping the economy. Don't agree with me, that's your right...but don't tell me I'm wrong.

LOL. Not only wrong, but kind of stupid. Yes, the very wealthy did invest the money that they saved on taxes and created jobs. Jobs in China, jobs in Indonesia, jobs in Mexico. but not jobs here, and here we are, in one hell of a fix, economically. And you and the rest of the cretins are suggesting that we cut taxes on the wealthy even more?

 

[manu1959]

i think that everyone that makes more than 250k should fire anyone that works for them that makes less than 250k......

then lets have all those on unemployment start their own company and see how they do.....

 

[Old Rocks]

i think that everyone that makes more than 250k should fire anyone that works for them that makes less than 250k......

then lets have all those on unemployment start their own company and see how they do.....

I think all of us should just go on strike, and close the country down for a few weeks and see how the wealthy make out.

No, that makes no sense at all, now does it. But it makes just as much sense as the nonsense that you posted.

We had a crisis 68 years ago. We spent to the point where the yearly deficit was more than 100% of GDP. And taxed the wealthy 99% after the first $300,000. And rewarded our service men and women with the GI Bill. A huge social service give-a-way. One that created more college educated people in this nation than any other nation in the world. And we led the world for another 50 years. Just to put things in perspective.