Saturday, November 22, 2003 - Apache Junction, Arizona, USA
TAXING AND SPENDING
Interesting the Repubo spin on the Dem debates. They’re ready to spank the old "Tax and Spend" monkey by saying that’s all they heard. Vote Democratic and see your taxes go sky high again to finance schemes for the takers in our society.
For those of you who aren’t into politics, allow me to give you the Repubo idea behind tax cuts. The rich you see, have tons of money. They own businesses and stores that employ people. But if the government takes their money away in taxes, they have to cut jobs in order to maintain their healthy profits. However, if we lower the taxes for the wealthy, as Mr. Bush did immediately on taking office and wants to do again, then employers will be able to open new businesses, produce more products and hire more employees, thus negating the job situation. You know, the highest unemployment rate this country has ever seen which came about AFTER the tax cuts.
The problem is, after cutting their taxes considerably, the rich simply stuff this found money into their pockets and continued cutting back on employees or using the money to close down US operations and open foreign operations where people are willing to work for $25 a week like back in the good old days.
Cutting taxes for the rich means the middle class has to foot the bill for government spending. The middle class, unlike the rich, doesn't have the tax shelters that stop the erosian of their spendable income. The rich don't make up for the down turn in economic spending because there just aren't that many of them compaired to the rest of the population. Less tax dollars coming in and less money being spent in the economy leads to guess what? A spending deficit in the trillions of dollars materializes along with a sick economy and unemployment.
I'll give you an example of how this effects the economy. The auto industry has sold less cars over the past 12 months. However there was a sharp increase in the sale of ultra luxuary vehicals, those with price tags between $30,000 to $300,000. Most of these automobiles are imports, of course. Since the middle class can't afford to buy a new car, sales of doemstic vehicles costing $10,000 to $30,000 drop considerably. This causes layoffs and a downsizing of the economy.
The repubo answer to spending is to cut programs that protect the environment, help pay for the education of our children, and limit spending on anything that might smack of "welfare" for America's poor and destitute. Meanwhile, they ship $87 billion of our tax dollars to Iraq to fix problems they started in the first place.
When the Dems get back in office, they will indeed raise taxes. For whom? Why, the wealthy of course. And guess what? Soon we’ll have a budget surplus again like we did before Mr. Bush took office. This will ease the strain on the middle class who will have more cash in hand to spend in the marketplace. Since more products are being purchased, more employees will be needed to manufacture them, ship them and sell them. Wonder of wonders, unemployment drops and the economy recovers.
Gee. I might shed a tear.
©2003 Marcia Ellen "Happy" Beevre
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