Thread: A tax question for Republicans, Conservatives, or Libertarians.

I have a genuine question born out of my ignorance of economics. So far I have asked a few conservatives on this site in a sincere effort to understand the answer, and it has been ignored or dismissed. So I thought I'd ask more people.

The Bush tax cuts have remained in effect throughout the economic crisis that started in late 2006. Most Conservatives seem to be against letting the Bush tax cuts expire as well. It seems like Conservatives and or the GOP havn't really proposed any type of spending, tax increases, or any programs designed to stimulate the economy, and I'm told taxes haven't been lower since the 50's.

So unless my premises are incorrect...I guess I have two questions...

1. If the Bush tax cuts remain in place, and the vast majority of the stimulus and almost all healthcare spending hasn't happened yet, why hasn't the economy responded in a positive way to low taxes since 2006?

and

2. Have Conservatives proposed anything besides keeping the Bush tax cuts in place to stimulate the economy?

It's an honest question that I don't find addressed anywhere on the infernal interwebs. Forgive me if my questions are pedestrian but I admittedly don't understand economics at all.

Originally Posted by Devil505

What you will get back will be one of three possibilities:
1. No response
2. Links to meaningless GOP "Happy Talk"
3. "Abide by the Constitution" or "Support our gallant troops" type platitudes.

I have faith that the anti tax crowd will provide me with an answer that makes sense

Originally Posted by Goldwater

I have a genuine question born out of my ignorance of economics. So far I have asked a few conservatives on this site in a sincere effort to understand the answer, and it has been ignored or dismissed. So I thought I'd ask more people.

The Bush tax cuts have remained in effect throughout the economic crisis that started in late 2006. Most Conservatives seem to be against letting the Bush tax cuts expire as well. It seems like Conservatives and or the GOP havn't really proposed any type of spending, tax increases, or any programs designed to stimulate the economy, and I'm told taxes haven't been lower since the 50's.

So unless my premises are incorrect...I guess I have two questions...

1. If the Bush tax cuts remain in place, and the vast majority of the stimulus and almost all healthcare spending hasn't happened yet, why hasn't the economy responded in a positive way to low taxes since 2006?

and

2. Have Conservatives proposed anything besides keeping the Bush tax cuts in place to stimulate the economy?

It's an honest question that I don't find addressed anywhere on the infernal interwebs. Forgive me if my questions are pedestrian but I admittedly don't understand economics at all.

This is all my opinion, take it or leave it. The thing about tax cuts is that the wealthy/rich do not reinvest the saved money into the economy. Whereas the average Joe uses the money to feed their family, pay bills and buy the things needed for everyday life. People are losing their jobs. Originally because alot were outsourced, now for a variety of reasons. They can't pay their bills, cant purchase new homes ... those options are gone for a lot of people. I don't blame the bailouts because that ship sailed during Bush and the majority of the money has been paid back with interest. This country cannot afford to keep the tax cuts and keep the wars going. Healthcare hasn't happened yet, so that's not a factor. There are a lot of reasons why the tax cuts haven't improved the economy under the Bush tax cuts, the above are just a few reason, IMO.

Originally Posted by ShawneeMoon

This is all my opinion, take it or leave it. The thing about tax cuts is that the wealthy/rich do not reinvest the saved money into the economy. Whereas the average Joe uses the money to feed their family, pay bills and buy the things needed for everyday life. People are losing their jobs. Originally because alot were outsourced, now for a variety of reasons. They can't pay their bills, cant purchase new homes ... those options are gone for a lot of people. I don't blame the bailouts because that ship sailed during Bush and the majority of the money has been paid back with interest. This country cannot afford to keep the tax cuts and keep the wars going. Healthcare hasn't happened yet, so that's not a factor. There are a lot of reasons why the tax cuts haven't improved the economy under the Bush tax cuts, the above are just a few reason, IMO.

Thanks Gypsy.

btw...I posted the same thread over on the other PF, the one with a million conservatives, and only one poster gave me an answer. He/She said that the tax cuts aren't effective because the economy is being held back by money hoarders afraid of an impending collapse.

So at least one conservative out of dozens had the nerve to broach the subject!

Originally Posted by Goldwater

Thanks Gypsy.

btw...I posted the same thread over on the other PF, the one with a million conservatives, and only one poster gave me an answer. He/She said that the tax cuts aren't effective because the economy is being held back by money hoarders afraid of an impending collapse.

So at least one conservative out of dozens had the nerve to broach the subject!

As my dad says "sometimes the silence is deafening"

Originally Posted by Goldwater

1. If the Bush tax cuts remain in place, and the vast majority of the stimulus and almost all healthcare spending hasn't happened yet, why hasn't the economy responded in a positive way to low taxes since 2006?

2. Have Conservatives proposed anything besides keeping the Bush tax cuts in place to stimulate the economy?

I'm pretty sure libertarians support a flat tax rate for all citizens.

@taxed's post,

The tax cuts have not substantially reduced current tax revenues, which were in fact not far from the 2000 pre-tax cut baseline and over the 2003 pre-tax cut baseline in 2006;

Not substantially reduced, no. Reduced, yes. We're in debt. Let's reduce tax revenue!

The increased child tax credit, 10 percent tax bracket, and fix of the alternative minimum tax (AMT) reduced tax revenues much more than most of the "tax cuts for the rich";

child tax credit - provides funding, which is required in substantial amounts, for raising a child
"tax cuts for the rich" - provides funding for... being rich?

Economic growth rates have more than doubled since the 2003 tax cuts; and

If you were to remove all taxes, economic growth rates would increase. What wouldn't improve is our government or anything regulated by it. Hence the debt we're in.

The tax cuts shifted even more of the income tax burden toward the rich.

Right. Pay less = pay more.

Simply put, there is no reason to give tax cuts to people who have a surplus of money. You know what would stimulate the economy? Giving tax cuts to people who can't pay their bills - like the poor. Not people who have excess money in the bank to put more money in the bank. Oh, if I saved the link - people who benefited from Bush's tax cuts actually earned $400 billion total more as a result of the tax cuts. I'm sure they needed it more than the rest of the citizens. But of course the people voting for these tax cuts are the people in the upper class, so of course they'll decide that they need it most.

Originally Posted by taxed

I would love to help on this. I hate typing, but if you are serious, I will do my best to help it all make sense.


First, we need to cleanse your brain from a lot of the liberal propaganda. Here is a good starting article...

Ten Myths About the Bush Tax Cuts | The Heritage Foundation

I don't have any liberal propaganda in my head about economics. My head is quite vacant except for some very basic questions. The only facts I've stated are not in dispute by either side. Taxes have been the lowest since 1950something since before the crisis, they still are, and that fact doesn't seem to have stimulated the economy. Conservatives have said that cutting taxes will stimulate the economy. Cutting spending won't stimulate the economy.

So what do conservatives propose to stimulate the economy that isn't happening now anyway?

How would they have been doing things differently to stimulate the economy if McCain and Congressional conservatives had won in 2008?

Thanks for the link, but the Heritage Foundation is an arch conservative organization, and I'd rather not trade my naivete' for a right wing bias untill I get a little further along in my quest here.

Though I may not get much further, conservatives are leaving this subject alone on the sites I've posted it on.

But thank you for your participation.