The economy isn’t looking too good right now. We’re in what appears to be another recession. De-regulation devastated the stock market here and around the world, middle class income is down $1000 over the last 4 years, national savings plunged, the country racked up a large trade deficit, the nation's cumulative debt has nearly doubled since Bush took office exceeding $9 trillion, the housing market bubble burst, the number of homeless families is increasing, baby boomers are retiring and straining Medicare’s solvency, the Iraq and Afghanistan wars are paid for with borrowed money totally nearly three trillion dollars and more people can’t afford health care coverage.
How about a tax cut?
If your cool-aid drinking Republican, what other choice is there? After all, as a fiscal conservative, you automatically know how to manage money through blind ideology.
In a March 28, 2008 Washington Post article titled, “As Candidates Warm to Bush Tax Cuts, Economists Warn of Long-Term Effect,” the harsh reality of politics sneers in the face of real solutions.
- “Bush and other politicians are telling voters alarmed by a sagging economy that keeping the cuts past their 2010 expiration date can help revive the nation's fortunes, a claim many economists say is nonsense. Far from acting as an economic tonic, the tax cuts "are neither sustainable nor beneficial" without massive cuts in government spending far beyond what Bush or any candidate to succeed him has proposed,’ said Alan Viard, a former economist in the Bush White House who is a resident scholar at the American Enterprise Institute.”
- “Out of curiosity, Viard asked a research assistant to put together a list of spending cuts and revenue hikes to cover the cost of making the Bush tax cuts permanent. Her findings? For starters, the government would have to slash benefits for Social Security, Medicare and Medicaid recipients. Any such package is political death,’ Viard said.”
- “Conceived during Bush's 2000 presidential campaign as a means to return what were then huge government surpluses to taxpayers, the cuts were approved by Congress in the midst of a recession, which worsened after the Sept. 11, 2001, terrorist attacks.”
It was a lesson in money management. Tax surplus’s should be saved or invested in projects that create jobs and improve the state’s quality of life. Plus, no tax increases.
Here’s where the facts get tricky. The numbers in the following two points are dramatically different, yet described as the same. Another dangerous sign that everything is equal, relative to the argument.
- “Bush and other Republicans, including McCain, want to make them permanent. That move would deprive the treasury of $2.4 trillion over the next 10 years, according to the Joint Committee on Taxation.
- The middle-class tax cuts also reduce revenue -- by about $800 billion over the next decade, according to an analysis by the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution.”
- "They (Democratic presidential candidates) said President Bush was fiscally irresponsible for enacting the tax cuts, but on balance, they would increase the deficit by just as much."
Freedoms just another word for trying something new.