Reading Politics

May 29, 2003 04:30 # 12544

Anduril *** rants...

Bush's Tax Bullshit

93% | 2

Well, it happened. Today, President Bush signed a $350 billion tax cut into effect. His claims about this tax cut are these: it will spark the economy by giving money back to consumers; it will benefit everyone, from the rich to the poor; it will eliminate "double taxation" on stocks; it will help small businesses (there are a few more, but these are the main ones)

Here are the reasons (as presented by leading economists) as to why it will not work:

1. Sure, it will benefit everyone to some degree; however, the gap between the rich and the poor will just grow wider with this. For example, a family earning $15000 a year will receive $53 in tax reduction under this plan. A family earning $45000 will receive $451. These are fine; however, a family earning around a million a year will recieve over $93000 in tax reduction. How's that for parity and benifitting the poor?

2. Giving money back to the biggest earners does NOT spark the economy. The top 1 or 2% are already spending a lot of money; and giving them a tax break will not cause them to spend more than they already are. Lower income consumers are much more likely to spend their tax cut money; however, they are given so little that it will not boost the economy as Bush has stated it will.

3. Bush has made a big deal about the need to eliminate double taxation on stocks (the company pays corporate taxes, and then the consumer pays taxes on the stock profit); he has repeatedly stated that double taxation is wrong. However, this just goes to show how little he actually knows about our tax structure. EVERY worker is double taxed: everyone pays payroll taxes (to cover Social Security and Medicare) AND income taxes.

4. Bush says that, since small businesses are generally owned by a single person (usually middle- or upper-class), reducing that person's tax load will allow the business to expand. These ideas, too, are flawed. Reducing a person's tax load will not cause him to spend more on his business (if Bush wanted that, then he would have reduced small-business corporate taxes); it is just an excuse to help the rich who back the Republican party by cutting personal taxes.

While this tax cut is claimed to be $350 billion, its actual cost is far greater. Over 7 years, it is expected to actually cost over a trillion dollars, plunging us deeper into debt (the 350 billion figure was obtained using loopholes and accounting tricks). This tax cut's cost without substantial return, coupled with the cost of the occupation of Iraq (contraty to the Administration's claims, it will NOT be a quick, easy occupation) will serve to keep us in debt for a long time. However, most Americans are too ignorant to realize that this is a bad idea (they are being bribed with a few hundred dollars into accepting a package that mainly benefits the rich); I fear that Bush will be re-elected and really fuck this country over unless the Democrats get their act together fast.

Any thoughts on this? Anyone have a rebuttal?

"It was not God who created man, but man who created God." --Santa Caserio

May 29, 2003 12:29 # 12558

Magnifico *** replies...

Re: Bush's Tax Bullshit

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2. Giving money back to the biggest earners does NOT spark the economy. The top 1 or 2% are already spending a lot of money; and giving them a tax break will not cause them to spend more than they already are.

Don't forget, Parth, those top 5% or so are the people building factories! When they build a factory somewhere, it creates jobs.

That, of course, isn't much of a theory in a globalized economy where it's easier for the heads of corporations to build factories in Pakistan, Azerbaijan, or Guademala than in their own country, where we have stricter standards for environmental safety and the welfare of the workers.

I'll believe in anything if you'll just believe in anything

May 29, 2003 23:30 # 12577

Anduril *** replies...

Re: Bush's Tax Bullshit

?% | 1

There are enough factories right now; no one would build a factory. Unemployment is high, so there are plenty of people searching for jobs, if people had enough money to pay them. The economy is under-utilized right now, so more factories are not required.

"It was not God who created man, but man who created God." --Santa Caserio


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