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Tax Cuts for the Rich? Good. Tax Cuts for the Middle Class? Wasteful.


By John Martin - Posted on 12 September 2011

Remember when all Republicans believed all tax cuts spurred economic growth, increased revenues, and promoted good old fashioned economic liberty? (You know, back before last Thursday?) Yeah, well those days are long gone. Now that the only tax cuts on the table are aimed at the middle class, providing workers and families with much-needed tax relief, we're beginning to learn that not all tax cuts are created equal.

For the first time in recent memory, Republican leaders and pundits of the right are bending over backwards to explain why Obama's proposed tax won't spur economic growth or lead to more employment. On top of that, we're finding out from the Republicans that the tax cuts within this bill aren't tax cuts at all, but spending!
 
Republicans, even the "honest," straight-talking Jon Huntsman are lying to voters, saying that Obama is up to his usual tricks. Obama's bill consists of over $250 billion in tax cuts, mostly aimed at the middle class, but if you listen to Huntsman, you'd think Obama is throwing all of this money down the drain, instead of giving it back to the people who earned it.

I think you have shaped the debate in a way that does not allow for a cognitive aproach.  First, we have not seen Obama's bill yet, however, we do know that there is a net spending involved and the supercommittee will be tasked with how to fund it (e.g.: new taxes).

So, how can you state that the bill is a tax cutting bill.  No, it IS a spending bill.  The US treasury will have to borrow the money or deflate currency.  Neither is good for an economy such as ours and will only increase companies' apprehention of hiring.

Use your heads folks, the government creates nothing, they can either get out of the way or continue to destroy. Period.

Furthermore, I like tax cuts more than the next person, but as Freeman editor Sheldon Richman points out, this one has a complication the politicians don't seem to care about:

President Obama's jobs program calls for cuts in both sides of the payroll tax. That tax finances Social Security and Medicare. Social Security and Medicare are already taking in less money than they need to pay retirees. So they will have to cash in more of the Treasury IOUs left behind when previous surpluses were used to finance general expenditures. But the Treasury is also already running a deficit, a trillion dollars-plus. So it will have to borrow more in the capital markets in order to pay back the Social Security and Medicare funds. Unless Obama makes up the lost revenue by changing the tax code. But then money will be withdrawn from the economy in the form of higher taxes so it can be put back into the economy through the payroll-tax cut. Somehow that's supposed to stimulate the economy.

Ahhhhh, Richman...that great advocate of libertarianism, whose 'Freeman' is published by FEE who teaches that unfettered capitalism is good, minimum wage is bad, and promotes the idea that what keeps showing up in economics and political science textbooks about The Great Depression is "myth", and they know better.   

Sorry, I'm not a believer in this particular economic theory. 

What more tax relief does middle class America need?  The vast majority of the Bush tax cuts when to the lower and middle class ~80%.  The payroll tax reduction, Making work pay credits all target the middle and lower class.  

So how is this any different?

I do take issue with your last statement: ", you'd think Obama is throwing all of this money down the drain, instead of giving it back to the people who earned it:"  As it unfairly casts one class of folks as earning while perhaps another doesn't earn theirs??

As someone in the tax bracket that pays the most income tax b/c I am phased out of most susbidies and loopholes for the middle class but am no where near the 250k+ crowd and don't derive much income from capital gains.  I get really irritated.  I am middle class and pay through the nose for it.  I bust my rear end to get more education and improve my condition but I am not in a favored group to be pandered to.  Sorry just get my hackles up.

Not sure how my last sentence "unfairly casts one class of folks as earning while another doesn't earn theirs." Other people earn money-- not just those targeted by these tax cuts. As a Republican, we're supposed to be happy about people getting their tax dollars back, right?

Why are you irritated by your tax situation? You should just work harder. Maybe take more risks. Maybe start your own hedge fund. 

OR... you could support the President's bill, which will cut your payroll taxes yet again. The Republicans want to raise your taxes.

 

i really like the title "Tax cuts for the rich?good.Tax cuts for middle class?wasteful".

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