"Tax cuts benefit everyone who pays taxes"

[SmartAlecCat]

@xtisme

The Bush tax cuts, for instance, benefited just about every category of folks who paid taxes, if by ‘benefit’ you mean ‘pay some non-zero amount less in taxes’.

Doesn’t that also depend on the nature of paying back the loan? Those tax cuts were paid for with borrowed money.

I mean, if I took out a loan from a bank, my cashflow looks nice for this year, but I have to pay it back later. You need to look at both sides to really assess benefit.

This is especially important if they choose to have the payback apportioned differently from the up front tax cut benefit…

Then you have to look at the older folks who benefit from the tax cut and never have to pay back the debt, or the children (even unborn ones) who saw no benefit from the tax cut, but will be responsible for paying it back in the future.

[Captain_Amazing]

@Mozart1220

That a 5% tax cut “across the board” benefits the rich much more than it does the poor. However, raisng taxes on millionares 3% benefits the poor much more than it hurts the rich.

Doesn’t that depend on what the money raised from that 3% raise is used for?

[Mozart1220]

@Captain_Amazing

@Mozart1220

That a 5% tax cut “across the board” benefits the rich much more than it does the poor. However, raisng taxes on millionares 3% benefits the poor much more than it hurts the rich.

Doesn’t that depend on what the money raised from that 3% raise is used for?

Irrelevent in this argument, unless you are looking for a nitpicky argument. Let’s assume all taxes go for good things, you know, like wars against countries that never attacked us…stuff like that.

[XT]

@SmartAlecCat

Doesn’t that also depend on the nature of paying back the loan? Those tax cuts were paid for with borrowed money

You see a tax cut as a loan?? I don’t see a tax cut in that light, to be honest.

This is especially important if they choose to have the payback apportioned differently from the up front tax cut benefit…

I suppose it comes down to whether you think a tax cut can or does have a positive effect on the economy or stimulates growth or at least consumption. If you don’t, if you think that people getting tax cuts just stuff the money in a mattress, or bank it overseas, or if you think that by not cutting taxes or even increasing them the government would have all that extra revenue to do stuff with, then I guess you might be right.

I guess we’ll see, since the Bush tax cuts for ‘the rich’ are due to expire soon, aren’t they? So, we’ll see how this stimulates the economy or rolls in all that extra cash for the government, ehe? Honestly, I don’t know what effect it will have, but I suspect that it will be less spectacular than some folks around here think it will be, revenue wise for the government. I also suspect that people (like me) will realize that ‘the rich’ is a bit broader of a category than seems to be the common belief, when surprise surprise, taxes go up. Time will tell, and maybe this time next year the economy will boom once the oppressive tax cuts are lifted…

-XT

[Lobohan]

@xtisme

@SmartAlecCat

Doesn’t that also depend on the nature of paying back the loan? Those tax cuts were paid for with borrowed money

You see a tax cut as a loan?? I don’t see a tax cut in that light, to be honest.

This is especially important if they choose to have the payback apportioned differently from the up front tax cut benefit…

I suppose it comes down to whether you think a tax cut can or does have a positive effect on the economy or stimulates growth or at least consumption. If you don’t, if you think that people getting tax cuts just stuff the money in a mattress, or bank it overseas, or if you think that by not cutting taxes or even increasing them the government would have all that extra revenue to do stuff with, then I guess you might be right.

I guess we’ll see, since the Bush tax cuts for ‘the rich’ are due to expire soon, aren’t they? So, we’ll see how this stimulates the economy or rolls in all that extra cash for the government, ehe? Honestly, I don’t know what effect it will have, but I suspect that it will be less spectacular than some folks around here think it will be, revenue wise for the government. I also suspect that people (like me) will realize that ‘the rich’ is a bit broader of a category than seems to be the common belief, when surprise surprise, taxes go up. Time will tell, and maybe this time next year the economy will boom once the oppressive tax cuts are lifted…

-XT

The tax cuts were paid for with borrowed money because they lower the revenue of the govt. by 700 billion. Unless you offset that in spending cuts you have to borrow money to finance it.

The Repubs didn’t make the cuts, so these tax cuts equal borrowed money.

The current issue is that the Democrats want to keep the tax cuts for the lower income earners and allow the top tier to expire. The Republicans want to keep all three tiers. Costing us $700 billion in additional deficits.

And it’s not that people bank their money overseas or put it in their mattresses. Rich people don’t spend tax cuts as much as poor and middle class people do. Rich people’s spending is more strongly tied to the stock market as I recall. If a rich person puts his money in a US bank it’s still not helping the economy, because the bank isn’t lending.

[Captain_Amazing]

@Mozart1220

@Captain_Amazing

Doesn’t that depend on what the money raised from that 3% raise is used for?

Irrelevent in this argument, unless you are looking for a nitpicky argument. Let’s assume all taxes go for good things, you know, like wars against countries that never attacked us…stuff like that.

I don’t think it is irrelevant. If you make the claim that raising taxes on millionaires helps the poor, you need to explain how raising taxes on millionaires helps the poor.

[The_Second_Stone]

It’s religious dogma of the religious right. Across the board tax cuts cut more taxes from the rich, which generate deficits in the future and therefore increase the tax burden on the flattened remaining tax-payers, which over time and in the future shifts the tax burden to away from those who were paying a higher marginal rate and onto those paying the flattened rate. Any deficit is a future tax.