Which tax cuts help the economy more?

[mzteris]

I heard a radio interview from a smallish town outside of Madison. Some "old guy" who'd been teaching economics for 20-something years at a small college had this to say, (or at least a close paraphrase)

"Taxcuts for the wealthy and the corporations DON'T create jobs. Wealthy people can already buy whatever they want. Any tax cuts they have will just go into their vast "savings" which doesn't help the economy. Cut taxes for the people who need the money to BUY things. When people have the money to buy, consumption goes up, then production goes up, THEN companies create jobs to meet demand. This increases the people's buying power and they start buying houses and cars again, things that generate the taxes that keep the communities going".

Sounds pretty simple to me. I'd love to hear what you guys think. (And why is some "old guy from a small town in WI have a better idea than all those "experts"?)

[Scuba]

1. Sounds like Laverne from Monroe. That dairy farmer knows more about derivatives than the SEC. n/t

[mzteris]

6. It was the Monroe station. n/t

[Tennessee Gal]

2. That's the way it works.

But Republicans will never admit it.

[judgegblue]

3. So obvious any fair-minded voter should understand

Best way to money in the hands of consumer is to create jobs, even if this is through public works programs. Next, make the payroll tax reduction permanent-and lift the cap so revenue can be raised from the corporate execs.

[doc03]

11. I am all for lifting the cap but the payroll tax cut is a

waste of money. I don't see where putting a couple dollars in the pocket of someone that already has job is going to create any kind of demand for anything that would create a job. If they do go buy anything where will it be made?

[Cool Logic]

4. Why do you think 1% of the population controls 38% of the wealth?

Answer: Because our Representatives let them have it.

Question: Why do you think U.S. tax code is 71,684 pages in length?

Answer: So that they can have more of these § and these ¶.

If you are rich and powerful, you get to write the rules. Thus, K-Street will ensure that one of those little thingys above, that was written by you and for the benefit of you, is on one of those pages.

What...? One of your's is not in there? Uh-oh...

Seriously, what is desperately needed is TAX REFORM. The US is the world's leading producer of red tape and it is choking us to death.

Only one percent of Americans are millionaires; on the other hand, 46 percent of our Congress is. You see, our Representatives have much more in common with themselves than they do with the People.

Thus, the three-card Monte nature of their tax code is nothing more than a short con in which the shill (Congress) pretends to conspire with the mark (People) to cheat the dealer (K-Street); when in fact, it is Congress that has conspired with the K-Street to cheat the People.

Regrettably, the naiveté that causes the mark to be deceived by the dealer's sleight of hand in three-card Monte, also causes the People to be deceived by K-Street's tax code.

[judgegblue]

5. And many of the 99% are convinced that it would be unfair

to increase taxes on the 1%.

[Scuba]

7. Many yes, most no. Of the many, some are willfully ignorant, others just ignorant...

...thanks to the 24-hour a day propaganda machine we know as "the free press".

[Cool Logic]

9. "Of the many, some are willfully ignorant, others just ignorant..."

...and/or naive.

For this game is so simplistic and obvious in nature that it is beyond my realm of comprehension how anyone can not see that we have a government of, for, and by two corrupt political parties.

[Cool Logic]

8. Likewise, many of the 99% who think that it would be fair to increase taxes on the 1%,

think it will solve our budget problems.

It will not, because of demographics. There simply aren't enough rich people.

Even so, raising taxes on the rich should be part of the equation, because if nothing else, it reinforces the idea of "shared sacrifice." I also believe that it makes sense to define things like stock options as compensation. This would ensure that those who receive corporate stock options pay their fair share of Income and Social Security taxes on those earnings.

The reason they don't now is because they have enough Ds & Rs in their pockets to ensure that the § & ¶ of the tax code are favorable to them.

[Angry Dragon]

10. You are correct the tax increases would not solve the problem

today or over night
It would help solve it over time
It also did not help to lower taxes when going into two wars
We are now into 6 wars
Let the tax rates go back up to where they were before, 70% for the top wage earners
Make the government justify being in so many wars, not just to say we need to fight the terrorists
the world has always had terrorists

[Scuba]

12. There might not be that many rich people....

...but they have plenty of money.


Tax capital gains at the same rate as payroll taxes and problem solved.

[Hydra]

14. $46 Trillion dollars sitting around at the top

During an economic depression they created.

You do know that that's $133,000 for every man, woman and child in America, right?

[Hydra]

13. Tax cuts don't usually help the economy at all

Minimum wage increase and Public Sector hiring would.

I don't have a problem paying taxes and supporting social programs if I'm employed and being paid what I'm worth. The rich shouldn't either.

Tax INCREASES and law enforcement would also go a long way to fixing our economy.

Likelihood of any of this happening?