it's time for the rich to pay back their tax loans

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Over at FDL, masaccio wrote that "It's Time for the Rich to Pay Back Those Tax Loans:"

Everyone knows that tax cuts in times of deficits are just loans. Eventually they have to be paid back. We can do it with tax hikes, or by running surpluses, or by cutting expenditures, but they have to be paid. Otherwise, we run up our interest expense, and crowd out private borrowers. For years, the US has been running huge deficits (except for a year under Clinton), all the while cutting taxes for the rich.

The rationale for those tax cuts was that rich people would use that money for investment in productive enterprise, directing it as only they with all their personal brilliance and their genius advisors can do. Then there would be all these new jobs in these new industries, ordinary people would have income and there would be capital gains and more taxes paid, so the tax cuts would pay for themselves. This absurd theory had the obvious outcome: staggering increases in the national debt.

The borrow-and-waste Republicans are too busy screaming about the small fraction (about 10%) of this year's deficit that can actually be laid at Obama's feet--they'll never take responsibility for Bush's 90%, or the huge debt that was run up by Reagan/Bush.

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This page contains a single entry by cognitivedissident published on August 2, 2009 11:07 PM.

demographics of the delusional was the previous entry in this blog.

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