Quote:
Originally Posted by ah-kay
I do not like to pay more tax than is necessary but I would not mind to pay my fair share of tax to balance the budget.
For the life of me, I just do not understand how tax cut could balance the budget. If this was the case, shouldn't the budget be BALANCED in the Reagon era, failing that, in Bush era? We need to cut spending and raise tax - similar to a household to cut outgoing and increase incoming. Which part of that our politicians don't understand?
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The theory is that cutting taxes puts more money in peoples pockets thus enabling them to spend more and so stimulate the economy, also that it will enable business to invest more and create more jobs.
Unfortunately that ignores the structural change that has occurred over the last couple of decades with so many jobs being offshored so that it doesn't matter if people have some more money to spend or business to invest as those jobs wont be returning and so the economy will not beniffet therefrom in the way these folks assume.
The flip side of that of course is that massive tax increases will also probably not have the desired effect as once the tax burden becomes too much business will contract, fail, increase their moves offshore etc.
It's a difficutl balancing act which so far neither side seems capable of acknowleding.
- Peter.
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Formerly...
2000 GMC Sonoma
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1984 123 200
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1972 Cadillac Sedan DeVille
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