Sunday, August 7, 2011

60% od the debt due to Bush Tax cuts!

Dick Cheney once said " Reagan proved that deficits don't matter" But of course Reagan raised taxes during his administration, and raised the debt limit. The theory now is cut taxes so that way the government doesn't have too much money to spend. So cutting taxes increases revenue right!
Or is it cutting taxes decreases revenue, I am confused. If the economy is too good we have too much of the peoples money so let's cut taxes, and if the economy is bad we have to cut taxes also, well which is it, or is simply let's cut taxes because I don' know what it does, raise revenue or decrease revenue, but I know cutting taxes is the answer?
This theory of cutting taxes can't have it both ways. Bush said cut taxes we have too much of the peoples money because the economy was doing too well, so he cut taxes and now he hands off to Obama a 1.2 trillion debt, and Obama has not raised taxes and now we have a much larger debt.
But the answer from the tea party is cut taxes more because the economy is doing bad. I know I only have a BS degree in college so I will leave it up to Dr. Jim to explain which is it!


Baxter said...

Since 1981, all we have seen is tax cuts and massive deficits. The only exception is the Clinton era, the one period of tax hikes and surpluses.

The chickens are coming home to roost, aren't they?

Jim G. said...

Terry, that BS must have been in golf course management, not economics.

Tax receipts (yes Terry, tax receipts) went up every year during Bush's term. Terry, deficits, yes deficits were a progressively smaller part of GDP untill the financial meltdown.

Terry, Bush came into office facing a recession then dot com crash then 9/11 then the wars. Despite these set backs, because, in part, of the tax cuts, the economy grew and unemployment remained low (around 5%).

Now your guy, the one who walked on water, came in controlling both houses of congress. He spent A LOT of money we did not have, he never passed and rarely submitted a budget. He wasted his opportunity to help the economy, instead doing health care. Mostly he has attacked the suscesful and continues to do so.

The deficit is getting out of control and THE WHOLE COUNTRY voted to stop his "spending".

Your party did not listen. A grand bargain was offered. Your party would not consider even the smallest of budget cuts. Your party wanted to just raise revenue on a small segment of the country. (and Terry, as I have often asked, what do you think the response would be to a poll question, "would you rather rather cut government spending or raise taxes on YOU?)

So Terry, we need the lowest tax rates we can get by on. We need to shrink the entitlement state, we need to reform S.S and Medicare.

So as you pine away asking when is it a good time to raise rates, I ask you, when is it a good time to reform government? When? And when will your party stop standing in the way?

Terry, one Conservative proposal was to shrink the size of government 1% a year for 5 years (in real terms) and we would have a balanced budget.

Did anyone on your side offer a way toward a balanced budget? Do you not think we could cut 1% a year? What was the response to the request....Draconian Cuts!

So we have been downgraded because we are not serious about dealing with our overspending, not our undertaxing.

Stick to grass.