Tax Cuts Too Small!

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I haven't been online much due to DSL connection problems. But personally I wouldn't cut taxes with my country at war. These aren't "ordinary" circumstances. I find the tax cuts at a time of war irresponsible. Just my purple tuppence.
 
"I find the tax cuts at a time of war irresponsible. "

Hmmm...I agree. I mean, honestly, what does some Nobel prize winning genius who has spent his whole life studying economics really know? :blahblah:
 
Verte I agree with you. I would have to read more to see if the Nobel Prize winner has taken this fact into account, or if it is purely based on looking at the economics of the recession without taking the war into account. I am not sure we can tell from just this article that NB has posted.

Max, based on your comment, I gather you would know the answer to this?
 
If you read the Economist at all there is good article that polls a bunch of economists for their opinion of George's economic policies. He gets a very low score. It would be interesting to find out why this Nobel winner thinks differently.
 
well the quotes from prescott in the article are of an economics textbook nature, 'lower taxes are an incentive to work relative to higher taxes'.

his comment seems off the cuff rather than based on research. but it would definitely be interesting to hear him flesh out his idea.
 
MissMoo said:
It would be interesting to find out why this Nobel winner thinks differently.

It's not clear from the article if the guy thinks differently. If you have tax cuts as the holy grail of your economic policy than they should have been larger. Of course whether you at all should have a tax cut while having such a large deficit is another question.
 
MaxFisher said:
"I find the tax cuts at a time of war irresponsible. "

Hmmm...I agree. I mean, honestly, what does some Nobel prize winning genius who has spent his whole life studying economics really know? :blahblah:

I respect the guy's accomplishments, and I'll be damned if I have his understanding of economics. No dice. I'm opposed to tax cuts during wartime. I don't mean to call this guy or anyone else some sort of idiot. I'm just stating what I actually consider a pretty moderate political view. Is opposing deficit spending liberal? If so that's a new one on me.
 
Tax cuts are exelent - but only if the government dosn't finance it via depts!

Clintons raising taxes to fight the national debts (-4.4% of the GDP - the mess Mr. Bush Senior left) his and Mr. Greenspans (expansive monetary policy) helped the US to get back on the right track and led to a time of wealth. Finally in 1998 the US economics was in a great shape.

From my point of view and looking back what i learned about economics i have to say that the current situation of the US economics is a mess. Mr. Bushs fiscal policy is horrible shortsighted. The government spends ways to much money and the tax-cuts are going to the wrong people
 
Klaus said:
Tax cuts are exelent - but only if the government dosn't finance it via depts!


Would this have been your advice to FDR in the mid 1930's?


Take a longer view of the picture. Clinton enjoyed a great economy, but by the late 90's it overheated and headed into recession.
 
I say we cut taxes even further for everyone and raise taxes on George Soros.
 
speedracer said:
I say we cut taxes even further for everyone and raise taxes on George Soros.


And Teresa Heinz Kerry.


I've seen reports that the effective tax rate for the Kerry family is lower than the average American
 
nbcrusader said:



And Teresa Heinz Kerry.


I've seen reports that the effective tax rate for the Kerry family is lower than the average American

That's fine with me if Teresa's taxes get raised. I think its fine with her too. She'll still have a whole heck of alot more money than i'll ever dream of if her taxes go back up.
 
U2democrat said:


That's fine with me if Teresa's taxes get raised. I think its fine with her too. She'll still have a whole heck of alot more money than i'll ever dream of if her taxes go back up.

Does it bother you that the candidate who cries "close the loopholes" exploits loopholes to great affect?
 
nbcrusader said:



Would this have been your advice to FDR in the mid 1930's?


Take a longer view of the picture. Clinton enjoyed a great economy, but by the late 90's it overheated and headed into recession.

The debts now are in a all-time historical high, don't you think that's dangerous?
Think about this and the balance of trade and i get the feeling that Americas economy is in danger
 
nbcrusader said:
And Teresa Heinz Kerry.


I've seen reports that the effective tax rate for the Kerry family is lower than the average American

Isn't that what so many of the rich Americans have been saying all along about Bush's tax cuts. That they don't mind forgoing their tax cuts, as they already have a lot of money. This is also one of the plans of Kerry, to rollback the tax cuts for those earning more than $200,000.

And about the article, while the Nobel Prize winning economist does say that the total tax cut should be bigger, he doesn't say how it should be divided. What I found striking was this line:
Tax rates were not cut enough," he said.

Lower tax rates provided an incentive to work, Prescott said.
With such a large proportion of the tax alleviation going to those with the highest incomes, I doubt if this would be the case. Will those earning over $500,000 (or even $200,000) suddenly want to work so much more, or even go to work? This may work with the lower and middle incomes, but not with the highest incomes.

Maybe the effect of the cuts would have been more positive if it had been geared more to the lower and middle incomes and less to the highest incomes...

C ya!

Marty
 
Klaus said:


The debts now are in a all-time historical high, don't you think that's dangerous?
Think about this and the balance of trade and i get the feeling that Americas economy is in danger

Debts during the Reagan era were "at an all time historical high". Yet, the economic base grew and the debts were gone within a decade (despite predictions that they would last for generations).
 
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