Tax cut for the Rich may not work
Staff Writer
2010-11-21
.bugnews.bloggieblog.com .
"Democratic presidents spread wealth around through needed social programs and targeting tax cuts to lower and middle income Americans – stimulating the whole economy. Republicans pump into defense contractors and high income Americans, creating larger deficits and higher interest rates."
"In the lame duck Congress, President Obama and most congressional Democrats want to extend the Bush tax cuts for 98% of Americans, everyone making under $250,000. Republicans want to extend the tax cuts for everybody despite Bush's bill in 2001 to suspend the cuts at the end of 2010 to restore revenue.
"Republicans portray the Bush tax cuts as similar to President John Kennedy's. That is a poor analogy. Kennedy cut the top rate from an exorbitant 91% to 70%. In contrast, Bush cut the top tax rate from a historically low 39.6% to 35%. By increasing enforcement and cracking down on loopholes, including the use of foreign subsidiaries for tax evasion, Kennedy increased government revenue. Republicans are fighting limiting outsourcing and foreign loopholes. Kennedy created 1.2 million jobs per year; Bush was losing 700,000 jobs a month his last year. "'Trickle down' economics has not worked since Herbert Hoover tried it. Every dollar devoted to the middle class causes the economy to grow three times faster than a dollar for the rich, according to CBO. Millionaires save more of their tax cuts. Middle class families spend them.
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