Rik Schneider Online

Thursday, June 14, 2012

"Are Tax Cuts Good or Bad?": President Obama on Tax Cuts and Growing The Economy



The Republican Party and the broader Right Wing have this broad notion, that President Obama of course a Socialist. And that cutting taxes for anyone is never a good idea and that Americans are under taxed and deserve and need to be taxed more for their own good. So the Federal Government can take care of them, that they have too much freedom and don't know how to handle it and that Uncle Sam needs to make a lot of decisions for them. There are Right Wingers who are actually ignorant enough to believe all of this nonsense and try to use it against the President. What the President was talking about today, is that there are right ways of doing things and wrong ways, there are right ways to cut taxes, to benefit the economy. To increase demand through more Consumer Spending, for people who are being pinched by taxes at all levels of government and actually need a break. And there's a wrong way to cut taxes, by not paying for them, cutting taxes that doesn't encourage Consumer Spending in a time of weak Economic Growth, like right now. But instead encourages people to save that money or send it oversees.

President Obama wasn't saying that Tax Cuts are good or bad but that it depends on how they are done. If they promote Economic Growth like cutting taxes for people who need more money to spend, need another car, have work to do on their homes, looking to take a vacation. Looking to pay off bills, so they don't fall deeper into debt, that those Tax Cuts are a good thing for the economy, then if they are just done in a way that encourages people just to save that money or invest it. But does nothing to encourage Consumer Spending, then thats not how to cut taxes. When Americans are spending money and not worried about losing their jobs or home, we tend to have high Economic Growth, the 1980s and 90s being pretty good examples of that. But when they are not spending because they are worried about getting laid off from work or not being able to pay their mortgage, we tend to have weak Economic Growth. The last decade, as well as right now being pretty good example of that.

At some point I'm going to write a blog on why Barack Obama is not a Socialist, I just need a slow news day to do that. And I'm not sure if I want it to be a straight blog, meaning serious and nothing else or whether I'm going to write it in satiric form and do like a Top 10 List of reasons why Barack Obama is not a Socialist. Stay tune, because there's more then enough evidence to aqquite Barack Obama of the charges of being a Socialist and the fact that he's cut taxes by over 200B$ since becoming President, is a pretty good clue of that.