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To: dools0007world; ding_dong_daddy_from_dumas; Marine_Uncle
RE :” Real tax cuts leave more money for the private sector to invest in growing their companies. This translates directly to job creation. In turn, this generates more consumer spending—simply because there are more consumers.....Finally, Lost tax revenue is more than made up by the increasing number of people earning a living and spending. I remember Reagan doin a tutorial on the subject using piles of pennies. He made it easy to understand...
Does this make any sense to you? Reducing taxes is not a theory. It’as worked every time it’s been tried

Two points, two practical and the other political.

1) Cutting taxes and then spending that money you didn't collect in taxes by running up debts does not inspire confidence indefinitely, because the money comes from someplace. It's a temporary Keynesian stimulus no magical fix.

2) Reagan didnt have a educated high skill lost cost huge China to compete with that we do. He just had Japan and some jobs did go to Japan at the time. Unlike 30 years ago, much more of general tax cuts will be used to buy Chinese goods and invest in Chinese factories and other overseas jobs than ever before.

And political : as a purely political argument the idea of taking from the rich to hire a voter/unemployed worker sounds more certain to him than lowering taxes further and hoping that beneficiary spends it or invests it here. And if that voter doesnt think he is the one to be taxed he is likely to think it's even better.

Republicans need to update their points to reflect the current economy. And 'Starve the Beast' is not compatible with 'Tax cuts are free'.

103 posted on 12/01/2011 12:15:46 PM PST by sickoflibs (Cain :"My parents didn't raise me to beg the government for other peoples money")
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To: sickoflibs
RE: "Republicans need to update their points to reflect the current economy. And 'Starve the Beast' is not compatible with 'Tax cuts are free'."
Agree. As you indicated to often the Republicans do not present a understandable rebuttal to the Democrat message. Statements such as we borrow 40 cents on every dollar we spend does not educate enough of the voter base on both sides. Conversely.
The sad condition is many of these voters are in debt to begin with due to how they live and manage their money.
They behave in an identical fashion as to what the Federal and State governments have been doing for many years. They live beyond their ability to stay debt free. So how can one expect them to be awakened by the short phrases the Republican leadership echo.
Lastly you are quite correct in your comments to some as we are working with a far different economic model today then say 30 or 40 years ago, when America maintained the greatest industrial base in the world. Jobs for just about anyone who wanted a job. Back when one could afford to get meaningful degrees, find appropriate jobs,purchase homes and then maintain their mortgages, etc..
The great decline in our industrial base has had a very deleterious effect on our ability to maintain Federal Government Budget surpluses. A different ball game entirely if one would.
109 posted on 12/01/2011 1:31:15 PM PST by Marine_Uncle (Honor must be earned.)
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To: sickoflibs

Obviously tax cuts are not “free”. Ultimately the cost of government must be paid for. But that’s the rub, isn’t it? Nobody is talking about that in real terms. Admittedly that bear is hugh. But you must start somewhere.

I would start with reviewing every entitlement and “war on” program to see if it accomplished its stated objective. If not, delete. None of them ever had, so they would all be deleted.

Then we can make a fresh start toward creating safety nets for folks who run into some turbulance. These safety nets must be predicated on being very temporary and getting these people back to work. Halting illegal entry into this country and then formulating policies that will drive the illegals already here back to where they came from are essential. Any one who’se unemployed and refuses these jobs will be stricken from unemployment coverage. It really is as simple as that.

Of course, all this is predicated on a return to Constitutional America and Capitalism. In short, the Marxists must go.


122 posted on 12/01/2011 6:14:17 PM PST by dools0007world
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