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4 Bumps

Can they actually cut taxes right now?

In order to pay down our current deficit, the average American would have to pay 42% of their income.

Um....
Even if they cut, cut, cut spending and big government, how can they also lower taxes?

Answer Question
 
lovinangels

Asked by lovinangels at 10:34 AM on Sep. 25, 2010 in Politics & Current Events

Level 39 (112,638 Credits)
Answers (53)
  • lovinangels

    Comment by lovinangels (original poster) at 10:35 AM on Sep. 25, 2010

  • They can't. It's just something they are trying to sell you. It makes no sense to give the top a tax break right now. The only evidence we need is to look at how we were prospering when Clinton implemented this tax.  They wold have to cut all government spending that includes medicare and social security to offset the cost of e tax breaks. 

    mommom2000

    Answer by mommom2000 at 10:43 AM on Sep. 25, 2010

  • Ah, yes. If we would just turn the government over to private corporations, we wouldn't have to worry about becoming socialists anymore. The GOP is desperate and even if they were to win every seat they expect to this season, they will not have the power to overturn a veto so this is all just a beautiful statement to gear up for 2012. I hope the tax cuts are allowed to expire so that the U.S. can see the evidence that the middle class is the most important group in the country's economic picture. Let them back in!
    stringtheory

    Answer by stringtheory at 10:57 AM on Sep. 25, 2010

  • Maybe the government should cut all their big time salaries, fringe benefits and expense accounts? That could save millions if not billions of dollars. Stop helping every freakin country that asks for help. We need to take care of the US first and then worry about every other country that comes begging for help. Especially countries that kill our citizens for just being American (ex: Haiti..which people there are begging for provisions...where did all the provisions we sent go? Probably to the government in Haiit).
    Anonymous

    Answer by Anonymous at 11:00 AM on Sep. 25, 2010

  • Cutting taxes always puts money back into the economy causing people to spend, invest and expand,  therefore increasing employment. The more people you have working, the more money the government takes in from taxes. The more the government takes out of the economy through taxes, the less there is for us to spend and for the rich to invest and expand businesses. The rich account for 30% of the spending, and the top 1% also pays for 95%  of the taxes the government takes in. So go ahead and soak them a little more, see what happens to the economy.  The government is a big drain on the economy and causes it to be where we are now. Obama is not going to fix it by growing the government, and taking more money out of the economy.

    Natesmom507

    Answer by Natesmom507 at 11:05 AM on Sep. 25, 2010

  • Econ 101: you cut the payroll taxes which allows people to take home more. These people who now have more money to spend do just that. When you begin to spend, there is an increase in demand which drives down supply. Company hire to meet demand which puts more people paying "payroll" taxes, point of sale taxes, inventory taxes. This causes the companies to show a profit which means higher taxes. So, you have to cut at one point to "stimulate" revenue at another. It is so simple that people think it is too simple. People forget that we are allowing a tax relief at one point, which directly causes an increase of revenue from another.
    jesse123456

    Answer by jesse123456 at 11:09 AM on Sep. 25, 2010

  • I would hardly call the government salaries big time...I always roll my eyes at that argument. Most of these representatives have the capabilities to make a lot more money with thier educations/backgrounds/etc. and many do make most of their money off of appearances and books. The actual salary for our represantatives? Actually an equitable compensation for their job in my opinion. Besides that though, Anon. I also roll my eyes at the "take care of the U.S. first" arguments, as though we are so bad off that the mostly third world countries we give to are going to start thriving at our expense. Our poorest couldn't even fathom the poverty in these countries so I don't feel we should stop any of our international humanitarian efforts. I did notice however, that you don't mention ending the war that is costing more than all our other expenses combined? You are ok with ridiculous spending if it is to fight an enemy we can't beat?
    stringtheory

    Answer by stringtheory at 11:10 AM on Sep. 25, 2010

  • Cutting taxes for the middle class puts money it back into the economy. They will spend the extra money. Cutting taxes for the top means they will be more likely to save that money and do nothing to help the economy. The CBO ranked this dead last on helping the economy, why would you argue against that.

    mommom2000

    Answer by mommom2000 at 11:15 AM on Sep. 25, 2010

  • It depends on the taxes you cut. Some tax cuts as nates and jesse said actually increase tax revenue. Add this to those that pay nothing actually paying something...end the tax credits...it isn't rocket science.

    I think we could easily end the deficit with spending cuts. I didn't say it wouldn't be painful though. We have no choice though unless we want to be Greece in a few years.
    yourspecialkid

    Answer by yourspecialkid at 11:18 AM on Sep. 25, 2010

  • Company hire to meet demand which puts more people paying "payroll" taxes, point of sale taxes, inventory taxes.


    The problem with this theory is that they aren't hiring American workers that would take in more payroll taxes.  They are outsourcing and using loopholes to get away with paying any taxes.  The top companies have the money neededto hire Americans right now they have a combined cash reserve of 1.8 trillion dollars.  They benefit from not hiring American workers, so giving them another tax break does nothing for hiring.   Sales tax, they are producing and selling overseas.  Wasn't Exon who paid zero in taxes last year.  Tax breaks isn't what we need.  Closing the loopholes and taxing the crap out of companies that ship jobs overseas is what we need.

    mommom2000

    Answer by mommom2000 at 11:21 AM on Sep. 25, 2010

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