Top Of My Head

Thoughts on everything from Politics to Video Games

Tag: Tax Cuts for the Rich

Republican Jobs Plan

Is it me?  Because I just don’t get it.  I don’t understand how the Republicans can keep coming back to the same old / same old and think that it will work.  Yes, Ronald Reagan cut taxes in 1981, but he raised government spending (and I’m really simplifying because monetary policy had a lot to do with the recovery).  The idea that the country can get our citizens back to work via lower tax rates and the reduction of government regulations is a one that is not based on any facts.

Here’s what drives companies to hire people – it’s simple, but true:  DEMAND.  That’s it, demand for a company’s good has to be high enough for the company to hire more people.  PERIOD.  If we’re not out purchasing Ding Dongs, the Ding Dong factory up the road is not going to hire more people.  It doesn’t matter how low a company’s taxes go, they’re NOT going to hire anyone they don’t actually need.

I don’t understand why it is that the Republicans in the Senate (led by John McCain) and the majority of the Republican Candidates for President do not understand the basics of economics.  And, actually, I do understand why Michele Bachmann doesn’t – the woman doesn’t know that Abraham Lincoln wasn’t a founding father and that Elvis is dead.  I understand why Rick Perry doesn’t get it – he’s a politician. But, Mitt Romney and Herman Cain are businessmen – Romney hasn’t been one for quite a while, but Cain did an impressive job turning around the Godfather’s Pizza business.

How can either one of them say, in all honesty, that they would hire someone they don’t need in a company just because taxes are low?

Why would anyone?

The truth is that consumers are tapped out.  I’m tapped out, you’re tapped out.  We’ve pretty much purchased everything we wanted in the last, say, twenty years.  I have a house.  I purchased two cars – one new, one used – within the past two years.  Other than buying some Christmas presents and a new cell phone, quite honestly, I’m done.  Finished.  There’s no more spending coming from my house.  It is time – and this is probably anti-Patriotic of me – to do some saving.

There’s a lot of people out there who are just like me.

So, how does the economy improve?

By the government spending, spending and spending some more.  I don’t like the concept, I don’t like the idea, but that’s what has to happen.  We can’t lay off 15,000 government workers in one state and expect that state’s economy to make any improvements.

We have been neglecting our infrastructure in this country for years.  Now is the time to fix the bridges, the roadways, the levees, our schools and whatever else needs fixing.  Now is the time for the government to spend.

There’s a balance that has to be met.  We can’t have too much government money pumped into the economy or it will push out private investment.  We need to find that balance.

But, we are not going to improve the economy by cutting more taxes and reducing even more regulations.  The Republicans need to start singing a new tune, because the economy can’t march to the one they’ve been singing.

Let’s talk about spending

I’m going to make this quick. The comments I’ve seen on facebook and here regarding my tax cuts blog basically say the samething. We need to cut spending. I agree. We do need to cut spending. I haven’t looked at all of the spending cuts in Paul Ryan’s plan. Although, changing medicare for those under 55 to a subsidized insurance plan will most likely make the insurance companies rich. If we cut spending to the Health care plan and we don’t make sure these companies offer some federally mandated minimums, I think Ryan’s plan will save the government money by shifting costs to the parts of society that can ill afford them.

I found figures that in 2008 we spent $12 billion per month in Iraq and, in 2006, we spent $6 billion per month in Afghanistan. If those figures hold for 2011, that’s a grand total of $216 billion we’re spending somewhere else. Perhaps we could put all of this “tax cutting” talk aside and bring our troops home.

Granted, the national debt grows by 4.07 billion per day, so at the end of the year, we’re at – roughly – $1.4 trillion dollars. $216 billion isn’t going to make that large of a dent, but it would be a start. There’s an old joke I’ve heard: a million here, a million there and pretty soon you’re talking real money.

Anyway…

Does it really make sense to borrow money to fight two wars? I’d, also, like the government to spend a million or two and investigate just where all that money is going. But, that’s taking us in the wrong direction.

Back to the tax cuts: we can’t afford them. We can’t make a law that will add to the burden. You can’t cut your income and expect to pay off debt. It just won’t happen. Quite frankly, at our current tax levels, we’re really hurting. We should make the Bush tax cuts, which were extended by Obama, go away. The little raise won’t hurt any of us.

That said, going back to pre-Bush levels shouldn’t mean new spending, that money should go to paying off the debt and balancing the budget. Republicans love to toot their own horn and erroneously claim that they’re for the working people, the middle class. They aren’t. All of these tax cuts throughout the years have done more harm than good for this country. Reagan’s tax cuts went too far and the tax cut Republicans that have followed him don’t understand that. There are government programs that people actually don’t want touched. Truth is, if you want to keep your Social Security and your medicare, you’re going to have to pay a little more in taxes. It’s just that simple. If you don’t want to keep these programs, then we can cut taxes.

If you want a smaller government, then the only thing we should have the government pay for is defense. No federal money for roads, health care, education, farm subsidies, bailouts, green energy research, bank bailouts, unemployment, NPR, etc. The list goes on and on. If you like these things, then we have to be willing to pay for them. If we, as a nation, decide that we’re not going to pay for them, then we can cut them all, put thousands of Americans out of work and everyone of us will scramble to pay for college without government loans and grants. We will have to find a way to put enough money aside to pay for our own retirement. When we lose a job, well, you better have 8 months of savings set aside because there will be no help coming. And, you can kiss public schools goodbye because the feds give 70% of the support to our local school systems.

But, you can have a hefty tax cut for the rich people who don’t have to worry about any one of those things. They have the cash to do it all. They earned that cash on our backs. It’s our labor that makes them that money.

It’s just something to thing about this morning.

© 2017 Top Of My Head

Theme by Anders NorenUp ↑