Are Americans 'catching on' tax cuts for the rich don't work?
Posted on Sunday, December 05, 2010 at 08:21 AM
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It stood to reason, he said - if the rich keep more of their money then that will somehow translate into more money and job creation for the American people.
The problem for the GOP is that it didn't, and it doesn't, and the American people may be finally catching on.
As if to underline the fact along comes billionaire businessman Warren Buffet this week, inserting himself into the most contentious tax debate doing the rounds: whether or not we should extend George W. Bush's so-called tax cuts for the rich.
Buffet made two points: Americans at the high-end of the tax bracket have never had it so good and the tax cuts as an economic public policy have not benefited the country.
"The rich are always going to say that, you know, just give us more money and we’ll go out and spend more and then it will all trickle down to the rest of you," Buffet told the press. "But that has not worked the last ten years, and I hope the American public is catching on."
But are the American public catching on? Buffet said that we should keep the tax cuts for the middle class but America's richest could comfortably weather the recession and help cut the deficit by paying tax rates established in the Clinton era, which - incidentally - were still among the lowest tax rates on the rich in modern American history.
"If anything, taxes for the lower and middle class and maybe even the upper middle class should even probably be cut further," Buffett said. "But I think that people at the high end - people like myself - should be paying a lot more in taxes. We have it better than we’ve ever had it."
America's had ten years of Bush era tax cuts for the nation's wealthiest, and the time has come to ask where are all the jobs that were promised by the "trickle-down" theory? It's worth asking because "trickle-down" theory has been a sacred tenant of the Republican Party doctrine for decades. It's worth asking before we balloon the deficit for years to come to pay for it.
As The Wall Street Journal reported this week, President Bush has the worst track record for job creation since the American government began keeping records in 1939. The Bush administration created just 1.1 million jobs net, while the Clinton administration created 22.7 million.
So much for "trickle-down."
Aren't economic policies and tax cuts that boost broad-based consumer income and spending a better way forward than making the already unimaginably rich even richer?
Are we finally catching on?
40 comments
porkheaven | Dec 05, 2010, 09:50 PM EST
The real problem is that the dam government can't say NO. the Democrates feel we need this socialized health care that you all have and not jobs and want to tax the health care benefits that we received thru employment.
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feeneycj | Dec 05, 2010, 06:09 PM EST
you can tax the rich more, but government will then spend even more, then the rich will have to be taxed even more, and so on, until we're all poor, then who will pay more taxes? Why invest or do anything for gain? Tax more but at the same time, spend less.
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seagreen | Dec 05, 2010, 06:06 PM EST
The private sector has made it quite clear how they can operate better than the US Govt. There are over 40,000 American companies manufacturing in China. They have managed to run domestic companies out of business, then jack the prices back here in North America once the surviving companies have been vanquished. With a few exceptions, the private sector could care less what happens to America, it is nothing but a huge marketplace where the public is placated with unending football an other nonsense! Where else do fighter planes fly over sporting events as part of the show,as if to validate the the ludicrous existence of the NFL. Perhaps when the tax situation becomes clear, we can start looking at import tarifs on items such as the now $129.00 kids hockey sticks. You can call it growth or what ever you want. I call it TREASON
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olovely | Dec 05, 2010, 05:51 PM EST
Rich Americans save rather than spend their tax cuts. Tax cuts in 2001 and 2003 under President George W. Bush were followed by increases in the saving rate among the rich, according to data from Moody’s Analytics Inc. When taxes were raised under Bill Clinton, the saving rate fell.
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1661996usmc | Dec 05, 2010, 05:36 PM EST
Who can reason with the Republican leaders? They just do't get it. Hoover (a Republican) started a recession and Bush (also a Republican) almost started another.
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michaelidaho | Dec 05, 2010, 05:36 PM EST
To Cahir and all you other "economists,"
Raising taxes is about the dumbest thing any government could do during a recession. Just to provide one example. It is a well known fact that when FDR raised taxes during 1930's, it stifled a modest economic recovery and the economy nosedived into the second dip of the Great Depression. If you think the government can use your money more efficiently than the private sector, you obviously have no clue about economics.
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killowen | Dec 05, 2010, 04:25 PM EST
amazing the concern shown the wealthy by the sheep.
its the brain removal programming that does it.
tooth fairy and santa stuff.
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tom/peggy | Dec 05, 2010, 04:24 PM EST
All Americans taxes were cut under the Bush tax cuts and federal revenue rose to record amounts. That changed when the Democrats took over congress in 2006. The fact is that government could take every penny the rich have and it wouldn't be enough to get us out of this SPENDING hole.
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Monsoonman | Dec 05, 2010, 02:18 PM EST
Reading the comments here reflects the truth in the book, "Animal Farm", where some animals are more equal than others. So your main female farm animal, champion of the "poor" made it to the pinnacle, Nancy Pelosi. This Goddesss and protector/defender of the poor had to have her own tax payer paid personal jet. Just the bar and food bill for that jet for her & her friends at taxpayer expense was 500K a year. Not to mention the special minimum wage expemptions she was able to fix for her husbands company which lets him pay his workers below minimum wage...Oh did I mention their vineyards and winery are non union? You are a flock of sheep.
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VDDService | Dec 05, 2010, 01:34 PM EST
I happened to be in Maine,USA when Papa Bush was running against Reagan in 70s and heard Bush proclaim thet Reagan's "tricle down economics" policies nothing more than "Voodoo economics", so no the american public did not hear!! and this was the reason that "W" never consulted with his smarter
father on the economy or Irag!! In the Republican's BAG !!
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phobrien31 | Dec 05, 2010, 12:50 PM EST
Most Americans get it but the rich only have to buy 41 Senator's (all of whom are rich). So much for democracy!
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FastEddy | Dec 05, 2010, 12:45 PM EST
So, now tax cuts is good? How about a rollback of sales taxes, then? If you thinks high taxes are so great, how about a tax on "illegal" workers? Or a tax on english speaking immigrants?
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Nicomax | Dec 05, 2010, 12:41 PM EST
The Laffer Curve soon became a "curve ball" that struck out those at the bottom of the pile. The problem we have now is that the bottom of the pile is getting bigger all the time, and we a bunch of hot-shot rookies on the mound with some new, sharp-breaking curve balls.
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Searlit | Dec 05, 2010, 12:39 PM EST
People have to help each other through this crisis, as their governments fail them. At least, the Irish know how to do this... I don't know about my fellow Americans, so many are living on fear these days, they've forgotten they can turn the channel.
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