The ‘Temporary’ Bush Tax Cuts
I don’t get it. I thought the Bush Tax Cuts were supposed to be a temporary measure to goose the economy while we were flush with money from the Clinton years? Isn’t that how Republicans sold it? We have so much money we should give some back and let the “job creators” reinvest? What happened? Where’s that big time boom we were supposed to get? Oh, a small recession and 9/11 happened? Well, OK, I’ll accept that. Then why did we keep the Bush Tax Cuts in place? Flush times were over, weren’t they? We didn’t have extra money lying around so why wouldn’t we have ended those cuts? They didn’t goose the economy and the deficit exploded anyway. Oh, we needed those cuts to boost the economy in a recession? So let me get this straight: when times are good, we should cut taxes to make them better. When times are bad, we should cut taxes to make them better. And the worse and better times are the bigger the cuts should be?
How can the exact same solution apply to diametrically opposed situations?
Conservatives will say that liberals are the same in that we always call for more government spending. Yeah, that’s not true at all. When the economy is bad, sure, we call for more spending. Even deficit spending! Why? Because unlike a business, the government can operate at a loss for an extended period of time. It’s so simple, even a conservative can understand it:
1. Businesses lay people off.
2. People have less to spend.
3. Businesses make less money and lay even more people off.
4. More people have less to spend. Etc.
5. Government intervenes and spends money in the form of public works projects and infrastructure repair.
6. People get put to work and have money to spend.
7. Businesses make more money and hire more people.
8. More people have more to spend, etc.
9. Government spending decreases as requests for unemployment insurance, food stamps and other public assistance drops.
10. Government spending further decreases as projects are completed but the economy can now absorb the newly freed up labor force.
11. Increased tax base allows government to pay back the borrowed money used to goose the economy.
The GOP Bush Tax Cut plan goes something like this:
1. Cut taxes in all situations
3. Increased tax revenue
Yeeeeah…that’s not gonna work. Remember this when the Bush Tax Cuts are up for permanent renewal this year. They were originally created because we had too much money. N now, the right wants to preserve them because we have too little. The Democrats don’t have to do anything at all to let them expire. They do have to do something to keep them alive. Don’t let them. Pressure the crap out out of your Senator to let the cuts die. We cannot afford them.