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Originally posted by FlyingIguana
states have to raise taxes to offset the higher yields that they have to pay on their debt. this gets passed on the citizens in either higher taxes or spending cuts.
there are better ways to stimulate the economy than giving a tax break to the wealthy. especially when it increases an already large deficit which could mean higher interest rates and an even lower dollar. will the spending help? probably, but the potential risks seem to outweigh the rewards.
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You are correct...almost always...if not always...a cut in Federal Taxes is offset by a raise in state and local taxes. I hate it when Republicans refer to the Reagan years and how his tax cuts spurred the economy. If the economy was so spurred why then did he leave office with a quadrupled National Debt? Republicans argue that the Congress spent a buck eighty-two for every new dollar brought in by the tax cuts...but the Congress actually cut the Reagan proposed budgets by a substantial amount...still yet it is the Congress that controls the purse strings so there is enough blame to go around.
To me though...a quadrupled National Debt means a failed economic plan...black and white with me.