T Nation

Bush's Tax Cuts?


#1

They'd be acceptable if we weren't in a war, but can we really afford to just lower taxes and increase spending? I can't help but feel that when I'm an adult, my generation will end up paying for this. So really, people are just stealing from their children, right? They get a tax break, but later their children will have to pay the debt.


#2

Conventional wisdom seems to dictate that taxes should not be cut in a time of war.


#3

If higher taxes would slow down the economy and chase business overseas then they would not help.

A balance is required. I think we need a cut in spending in many areas.


#4

That's a pretty simplistic view. The problem with Bush (and this is a conservative speaking) is that he has not vetoed one spending bill in his tenure. There is way too much pork barrel spending. I acknowledge the war is very expensive to fight but it is not the only expense that can be managed.

As a conservative, I do feel betrayed that my own party is spending like a drunken democrat. As Randman continues to drift on towards a full-on libertarian...


#5

Are you kidding? You're totally paying for it, along with your kids.

It's not really a tax cut, as much as it's a tax deferrment. It's like you or me buying tons of luxury items and putting everything on a credit card, and then giving the bill to your kids.

On the other hand, Paris Hilton does need a tax cut, so I guess it's worth it.


#6

Heading there myself. Unfortunately this is the normal business of the day. I can forgive some of this, but there is no reason not to have cut something, (and not that cut in the growth of spending is a cut bullshit.) And that big Medicare drug bill, already is costing more then they expected.

Unfortunately we have not had a surplus since 1959 - 1960. Yes I know it is common knowledge that we had a surplus in the late 90's, yet interestingly the debt kept going up. (I don't think that qualifies as a surplus. Who here does?)

I have to live on a budget, why the hell can't the government?


#7

Come to the light randman. Join us.


#8

Regardless of tax cuts, spending must be curtailed, but this administration has not shown the guts to do so. Entitlement spending at an unsustainable level will eventually bring an economy down. The expansion of medicare is a huge mistake. Now we are talking about putting more money into an underperforming education system. It goes on and on....


#9

I am 39 years old an I am paying for the generation before me.


#10

The balanced budget in the late 1990's was fictional. Clinton and a Republican controlled Congress both tried to take credit for the fiction. No one wanted to expose the lie.

As you said our debt was climbing every day. How they could call that a surplus is beyond my understanding.


#11

I concur with the Medicare statement. From there, it becomes a question of methodology and priorities.

Education is vitally important. But, does that mean the government should allocate more money towards that particular area of the budget, or does the education system itself need to be overhauled? In business, when a critical area is underperforming, a hybrid approach is usually taken: allocate a little more money to bring in a better management staff, and, for the love of god, MANAGE.

I'm not for one second going to pretend to be knowledgeable enough to offer my own solution to the education problem, but it definitely needs to be fixed.

And as for the rest of the budget... too much fluff, not enough substance.

While I disagree with several of Bush's statements last night, I was disgusted to hear that a lot of the Dems stood and applauded when Bush mentioned that his Social Security reforms were not implemented.


#12

Tax cuts themselves are not bad, but only when used in the context of a balanced budget. It's true that we are at war, but even if you deducted war-related spending the govt. would still have a cash flow shortfall. Now if it is decided that the programs that the govt is currently funding are worthwhile, than we have to raise taxes in order to meet these requirements. One thing that was cut this year Student Loan funding, I am an auditor and CPA, who had to take out student loans to put myself through college. The raise in interest rates as a result of the cuts means that over a 5 year time frame a student graduating college now will spend about $4000 in interest on the loans while receiving about $1000 in additional tax cuts. so basically a loss of 3 grand to the individual. Tax cuts sound appealing, especially polittically, but in the end we end up paying more for them.


#13

Yup, I'm in the same club too. But the problem isn't really the tax cut (though a lot of it goes to the rich). Revenues have gone up a lot in the last couple of years, it's just that they are being more than outweighed by pork-barrel spending and, more importantly, the prescription drug plan and defense spending (not that I'm arguing about that last one). And Bush must think we're all idiots if he thinks he can boast about slowing the growth of domestic discretionary spending like he did last night.


#14

Couple questions. Why was the Clinton era balanced budget an illusion? I have not heard this before.

Secondly, no other country, I believe in the history of the world, has given tax cuts in the middle of a war. This is a very very bad economic decision.

Third, there is so much unnecessary spending going on in Washington that it sickens me. Take a portion of what they are blowing on the Iraq War, and we finally have national health care. You can see what the priorities for this administration truly are though.


#15

Good post. But why are you disgusted?

I thought it was excellent. Bush has done more to divide the parties than any president in recent times. The Democrats hate him, and there is no reason to hide the disdain for someone who so clearly doesn't give a flying fuck about their views, President or not.

Honestly, I was happy. Anything that makes them find their fucking backbone again is good to me.


#16

I forget the accounting trick they used but the deficit every day grew even while the budget was allegedly balanced.

Perhaps they ignored the debt payments when they "balanced" the budget?

It was a sad joke at the time but everyone ignored it because a balanced budget looked good for both parties.


#17

Well the education question is a good one. If it were a business, our current system would be out of business. The Constitution has no mandate that the government be responsible for funding education. Too late, the horse is out of the barn. So how do we move forward? My preference would be allowing parents to choose their own schools. I like the concept they use in Belgium, where the money is attached to the kids. If the school can't attract kids, it goes out of business.


#18

I understand how it would. This may be the only time that I'm going to say "Where the fuck is Rainjack?". I'm curious about this.


#19

Tax season. He's busy.


#20

I say we cut taxes and stop funding idiotic countries. Also, stop paying back monies we owe to other countries......they never fucking pay us.