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An editorial in the Post got me thinking about Bush's insanity. Now, I've always been skeptical that a tax-cut would somehow 'boost the economy.' Personally I find when I need to pull my finances together, I need to INCREASE income and DECREASE spending - the exact opposite of the Bush plan.
A couple of facts that show why this Bush plan fails even if you believe that cutting taxes does stimulate growth and help the economy:
1. Taxes are not being cut from the middle-class, they're being cut for businesses and investors
2. Most company profits are coming by cutting staff and domestic expenses
3. Many businesses are saving production costs by moving all the operations overseas, particularly to high-tech countries which have a large english speaking populations.
SO - this means that cutting investment taxes does stimulate grown - but not in the US. It stimulates growth overseas. By this view it makes more sense IF cutting taxes is to stimulate business and the economy, that to help the US economy that you would cut income taxes and allow the average bloke a chance to buy more stuff.
You see I don't mind conservatism. I am getting more and more in favor of cutting spending, good old fashioned fiscal conservatism. No wait, that's not entirely true. I think the rewards for monies spent on public transportation, environmentalism, and education are always worth the expenditures. I think that still fits the fiscally conservative paradigm as those expenditures are so infinitesimally small compared to interest on the national debt.
What Bush is doing is not conservative by any stretch of the imagination - and that's before you point out that whole war issue.
A couple of facts that show why this Bush plan fails even if you believe that cutting taxes does stimulate growth and help the economy:
1. Taxes are not being cut from the middle-class, they're being cut for businesses and investors
2. Most company profits are coming by cutting staff and domestic expenses
3. Many businesses are saving production costs by moving all the operations overseas, particularly to high-tech countries which have a large english speaking populations.
SO - this means that cutting investment taxes does stimulate grown - but not in the US. It stimulates growth overseas. By this view it makes more sense IF cutting taxes is to stimulate business and the economy, that to help the US economy that you would cut income taxes and allow the average bloke a chance to buy more stuff.
You see I don't mind conservatism. I am getting more and more in favor of cutting spending, good old fashioned fiscal conservatism. No wait, that's not entirely true. I think the rewards for monies spent on public transportation, environmentalism, and education are always worth the expenditures. I think that still fits the fiscally conservative paradigm as those expenditures are so infinitesimally small compared to interest on the national debt.
What Bush is doing is not conservative by any stretch of the imagination - and that's before you point out that whole war issue.
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