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Post by redwolf on Sept 9, 2007 10:57:49 GMT -6
"The Republicans will almost certainly renew their calls for tax cuts on investments and multimillion-dollar estates, arguing that such cuts would pump up the economy. But lower taxes for the rich would not benefit the middle class and would only worsen the budget deficit. Republicans may also continue to champion financial deregulation as a way to juice the economy. But that led to the housing bubble — and the current mortgage mess." www.nytimes.com/2007/09/08/opinion/08sat2.html?th&emc=thCorrect me if I'm wrong, but doesn't Ron Paul support tax cuts and deregulation for big business? Is this wise given our current situation?
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Post by blueneck on Sept 9, 2007 13:22:48 GMT -6
You are not wrong at all. The Bush tax cuts for the wealthy were unwise before and contributed to the runaway deficits and financial bubbles of today, at a time when they weren't needed or even really being asked for by the wealthy. It may have made some sense back in the Reagan days, but the economic conditions were very different then.
So any further supply side cuts would just worsen the current crisis.
What we really need are some "demand side" tax cuts and incentives like higher pay for lower and middle class, to put money in the hands of those more likely to need it and spend it - thus creating demand for products and services. Supply does not create demand.
While I really like Paul and his general themes of constitutionality, trade and less foreign misadventures, taxes are an area I completely disagree with him. As "comrade" Theodore Roosevelt was fond of saying - the wealthy benefit more from the rights and privileges of a free society, therefore have a greater obligation to contribute to it.
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