Why has this bill become so polarizing? Because the republicans want more tax cuts and less spending. But tax cuts are fiscally irresponsible. There is so much history and evidence that demonstrates what tax cuts really to do the economy: anywhere from not much to nothing. When taxes are cut, the per person benefit comes to several hundreds dollars per year at the most. So how does that stimulate the economy for future growth? It doesn’t. In fact, it reduces the revenue of this country so much that the economy suffers and jobs are lost. What good is a tax cut to the unemployed? No good.
On July 25, 2006, the Treasury Department released a study entitled “A Dynamic Analysis of Permanent Extension of the President’s Tax Relief.” It sighted that tax cuts, contrary to popular belief, do not have the ability to stimulate growth or create jobs. It states the contrary, that if the tax cuts at issue in 2006 were to remain permanent, the rate of investment would be lowered and eventual job loss would ensue.
In September, 2006, a non-partisan Congressional Research Service stated that “at the current time, as the stimulus effects have faded and the effect of added debt has grown, the 2001-2004 tax cuts are probably costing more than their estimated revenue cost.”
So why do republicans want them? Maybe just out of habit. And it sounds simple, easy, and it makes their constituents feel good. Don’t you think it is time that republicans look into the true affects of tax cuts? There is just too much at stake.
Filed under: Uncategorized
