Why isn't the GOP talking about cutting taxes right now?

[hortysir]

Maybe...I see where you're going so maybe I'm just as drunk.

But seriously, if the slashing of taxes was such a silver bullet, wouldn't McConnell, Bohener, Limbaugh, Ryan, et. al. be screaming it right now?

I think tax cuts aren't being mentioned because most sane people realize revenue stream (without having to increase it substantially) and cutting unnecessary spending........

Not sure what you meant there. Can you elaborate?

Just saying that I think they realize that we should, at least, keep the revenue steady.
No cuts OR increases

 

[Antiderivative]

The OP lives in a cave. The only thing Republicans know what to do is to cut taxes and increase spending. The recent budget that passed the House proposed to further reduce the top tax rate by 10% and place a 25% cap on tax rates.

Unfortunately, some people like to live with their head up their ass and not pay attention to the world around them.

 

[candycorn]

I think tax cuts aren't being mentioned because most sane people realize revenue stream (without having to increase it substantially) and cutting unnecessary spending........

Not sure what you meant there. Can you elaborate?

Just saying that I think they realize that we should, at least, keep the revenue steady.
No cuts OR increases

Okay...that's what I thought you meant but didn't want to make the assumption.

I agree; I also think, however, that it uncovers some doubt that they have about the effectiveness of tax cuts; "they" being the leadership.

 

[candycorn]

You can disagree all day, it won't change the facts.

"Investment" is not limited to adding employees directly. If the government takes an additional $12,500 from you in your hypothetical example, that is $12,500 you (and millions of other entrepreneurs) no longer have available to purchase equipment, computers, pencils, advertising, etc.. That is why whenever tax rates increase - the amount of cash available for "investment" decreases- and unemployment increases because of it.

This is where I get a bit confused.

Again, if it means more hires, they should be shouting "cut taxes" from the rooftops.

I don't think it means anything when you cut taxes. If I have a side business and you cut my taxes, I'm not necessarily going to hire people just because I can. I'll pocket the windfall, perhaps buy some more stock...maybe.

It's not a guarantee.

Just like raising taxes isn't a guarantee that there will be slower hiring.

I will agree that if you have less money in the hands of business owners, they will LIKELY not hire more people but I doubt they will start firing people based on having to ante up another $5K a year. Maybe but I don't think so. They still need to compete with others.

I'll tell you what I think the situation is, in my own opinion.

Tax cuts increase the deficit in the short run. So the reason we can't cut taxes now is because it would be politically impossible for Republicans to be screaming from the rooftops about "balancing the budget" and "Cutting spending"; then go out and call for tax cuts that will increase the debt.

The country has painted itself in a corner. We can't raise taxes, and we can't cut them. So we need to cut Gov't spending by 1-2% of GDP per year until we "right-size" the government. It is going to be a low or negative growth economy for the 5-6 years.

Tax increases always lower GDP, the question is by how much? So the real question is this: are we willing to take the double wammy of tax increases (that result in lower GDP) and lower government spending (also lowers GDP). Time will tell...

I think that is a valid opinion except everytime they talk about growing the revenue coming into the government, they do so in the frame of cutting taxes.

Thanks for the input. Good stuff.

 

[NYcarbineer]

Haven't some been calling for cutting our highest in the world corporate tax rates?
I think we should cut corporate rates and cap gains to 10%.

Yeah, we could be like Ireland. Remember the Ireland story, some of you, from a few years back?

Ireland was the economic darling of the free world, and the tale was, it was all about Ireland cutting its corporate tax rates. Big story!!

How's that workin' out now?

The tax cuts worked great.
Unemployment was the lowest in the EU.
You think that was the cause of the real estate bubble? LOL!

Ireland is a fiscal mess.

All the countries of the world that fell victim to the siren song of the low tax free lunch have now crashed on the rocky shore of reality.

 

[NYcarbineer]

If it will fix everything...why not do it now?

Because now the GOP is focused on taking political advantage of the deficits that their previous tax cuts created.

Yes, it is diabolical.

Not true. The Bush tax cuts increased revenue more than enough to pay off the debt they created. The problem was the Republican Congress increased spending massively. Then Pelosi and Reid doubled down on spending.

Spending is the problem- not tax cuts. Now we've painted ourselves into a corner and there are no easy answers. It is not a partisan issue- it is an AMERICAN issue.

That makes no sense. The Republicans cut taxes a SECOND time in 2003, the same year they started a SECOND war ( having never paid for the first one) AND the same year they passed Medicare Part D.

As I've said before, and the above is a perfect example,

you can't be a low tax nation and be both the world's policeman and defender AND have a modern comprehensive domestic social agenda at home. The math doesn't work.