Will democrats shrink our economy?
Written by packagin on July 11th, 2009
Expiring tax relief, big spending on the agenda for Congress.
When Republicans passed major tax relief packages in 2001 and 2003, we predicted that a booming economy, new jobs for millions of Americans, and an increase in investment and innovation would result. The past several years have proved our theory correct: When government gets out of the way, the American people will get to work.
The 2001 and 2003 tax reductions have spurred more than five years of uninterrupted growth. The economy grew at a robust 3.4 percent in the second quarter of 2007. Productivity growth has averaged 2.8 percent since 2001, considerably above the average of each of the past three decades. Since August 2003, our economy has created more than 8.2 million jobs, and the current unemployment rate is just 4.5 percent, lower than the averages of the 1960s, 1970s, 1980s, and 1990s. Wages have been on the rise, and real after-tax income is up 9.9 percent since President Bush took office, an average of nearly $3,000 per person.
The tax relief has helped produce an economy that has generated higher than expected tax revenues for the federal government. Tax receipts have risen 37 percent over the last three years and are projected to increase another 7 percent this year. These rising tax receipts have, in turn, helped drive down the deficit, which is projected to drop significantly in 2007 for the third year in a row. The deficit this year is expected to measure just 1.5 percent of GDP, considerably below the average of the last 40 years.
The tax relief we passed has had exactly the effect we intended it has spurred growth and innovation and created jobs and opportunities for millions of Americans. But continuing this growth requires continuing the policies that have produced this growth in the first place. Failing to extend the tax relief we have passed would result in a de facto tax hike that could cripple our economy and undo much of the progress we have made over the last few years.
Lowering taxes on income and investment encourages people to work more and invest more, because they get a greater return on their work and investments. This extra work and investment creates new jobs, increases productivity, and encourages innovation and development in other words, produces economic growth, as we saw with the 2001 and 2003 tax relief.
Raising taxes, on the other hand, has the opposite effect. As rates increase, the rewards of labor and investment decrease. People see more of their income and the returns on their investments eaten up by taxes, and this gives them little incentive to work more or invest more. Without new labor and investment, economic growth grinds to a halt, and the economy stagnates.
Unfortunately, Democrats have approved a budget that fails to extend the bulk of the 2001 and 2003 tax relief most of which is set to expire in the next few years resulting in a staggering tax hike of at least $736 billion. Most notably, the Democrats budget fails to extend the lower tax rate on capital gains and dividends and most of the income tax relief weve passed, the two provisions that have done the most to spur the strong economic growth of the past several years.
In addition to this massive tax hike, Democrats on the House Ways and Means Committee are also proposing another growth-stifling tax hike to pay for alternative minimum tax relief, this one a 4 percent tax hike on higher income Americans and small business owners. Almost 20 million Americans will be liable for the AMT this year if Congress doesnt act. While Republicans strongly agree that the AMT must be fixed once and for all so that it doesnt target millions of middle-class families, paying for an AMT fix with a tax hike is not the answer.
Raising taxes on these Americans would place a particularly heavy burden on small businesses, most of which are taxed at the individual level. Small businesses employ half of all private sector employees and have been responsible for 60 to 80 percent of the net new jobs created annually over the last ten years. Burdening successful small businesses with significant tax hikes, as the Democrats plan would do, would jeopardize future economic growth and job creation.
The success of Republican tax relief policies is clear. In contrast, raising taxes by allowing tax relief to expire or by passing burdensome new tax hikes would threaten the progress our economy has made and discourage future growth. Democrats should remember the millions of taxpayers who have benefited from the tax relief weve passed and work with Republicans to extend the tax relief and reject new taxes.
L
Tags: 1980s, 1990s, Current Unemployment Rate, De Facto Tax, Gdp, Government Tax, New Jobs, President Bush, Productivity Growth, Republicans, Second Quarter, Tax Receipts, Tax Reductions, Tax Relief, Uninterrupted Growth
Tax breaks, rebates, tax relief, are we asking the right question?
Written by packagin on April 12th, 2009
Any way you look at it, tax breaks, rebates and tax relief are all handouts to someone. If you give a 3% tax break to corporations and the wealthy, it is a handout that they didnt have before. If you give a tax break, rebate or tax relief to the tax paying middle class, it is a handout they did not have before. If you give a check to those that do not pay taxes and call it tax relief, it is still a handout.
I think that the question we have to address is which option (if any) is best for America, American jobs and therefore the American people as a whole.
We saw the lack of results when the stimulus package was handed out last June and July. The money in 98% of the households went to pay down debt or to pay every day living expenses. Statistics show us that very little of it went to the retail markets and an even smaller amount went to savings. Did this bring an increase in jobs? Obviously not! Our jobless rate is higher now than it was then. So can we honestly believe that giving tax relief or tax cuts or rebates again to the middle class and the poor are going to result in an overall improvement in the nations economy?
During the years of Reganomics (trickle down economics), the United States saw unprecedented growth in jobs and general strength and vigor in the stock markets. No tax relief or handouts were given to the middle class.yet the overall state of middle class Americans improved substantially as jobs became easier to get and new innovations and inventions generally made our lives easier. It stands to reason then that providing incentives to large and small businesses alikerather than to individuals is much more likely to create jobs ..thus a better economy for all of us.
The problem as I see it with Sen. Obamas tax policy is that he is COUNTING on the American people who receive this tax relief to somehow join together to help build a better American economy for all. Our experience with the stimulus package has already shown us that this is not likely to happen.
The problem with McCains tax policy is that he is COUNTING on the goodness of the corporations and the rich to use the tax breaks to create new jobs. Frankly, without specific requirements that must be met by those corporations and the largest of the so called small business sector, this is not guaranteed to help either.
My proposal is to keep in place the tax levels currently given to large corporations, but insist that they meet specific requirements to remain at that level. Requirements such as, No jobs being outsourced to other countries and those already outsourced must be brought back to America and to American workers. Another requirement would be that funds belonging to these corporations can not be placed in offshore accounts, but must remain in American financial institutions. This proposal I believe would lower the jobless rate significantly thus improving the overall economy. When people have jobs, the economy grows. All businesses then become more profitable as the demand for their products becomes greater.
John McCain comes closer than Obama to being able to do this.
Please give me your opinion.
L
Tags: American Economy, Asking The Right Question, Inventions, Jobless Rate, Living Expenses, New Innovations, Retail Markets, Sen Obama, Stock Markets, Tax Breaks, Tax Cuts, Tax Rebates, Tax Relief, Unprecedented Growth, Vigor
Tax breaks, rebates, tax relief, are we asking the right question?
Written by packagin on April 9th, 2009
Any way you look at it, tax breaks, rebates and tax relief are all handouts to someone. If you give a 3% tax break to corporations and the wealthy, it is a handout that they didnt have before. If you give a tax break, rebate or tax relief to the tax paying middle class, it is a handout they did not have before. If you give a check to those that do not pay taxes and call it tax relief, it is still a handout.
I think that the question we have to address is which option (if any) is best for America, American jobs and therefore the American people as a whole.
We saw the lack of results when the stimulus package was handed out last June and July. The money in 98% of the households went to pay down debt or to pay every day living expenses. Statistics show us that very little of it went to the retail markets and an even smaller amount went to savings. Did this bring an increase in jobs? Obviously not! Our jobless rate is higher now than it was then. So can we honestly believe that giving tax relief or tax cuts or rebates again to the middle class and the poor are going to result in an overall improvement in the nations economy?
During the years of Reganomics (trickle down economics), the United States saw unprecedented growth in jobs and general strength and vigor in the stock markets. No tax relief or handouts were given to the middle class.yet the overall state of middle class Americans improved substantially as jobs became easier to get and new innovations and inventions generally made our lives easier. It stands to reason then that providing incentives to large and small businesses alikerather than to individuals is much more likely to create jobs ..thus a better economy for all of us.
The problem as I see it with Sen. Obamas tax policy is that he is COUNTING on the American people who receive this tax relief to somehow join together to help build a better American economy for all. Our experience with the stimulus package has already shown us that this is not likely to happen.
The problem with McCains tax policy is that he is COUNTING on the goodness of the corporations and the rich to use the tax breaks to create new jobs. Frankly, without specific requirements that must be met by those corporations and the largest of the so called small business sector, this is not guaranteed to help either.
My proposal is to keep in place the tax levels currently given to large corporations, but insist that they meet specific requirements to remain at that level. Requirements such as, No jobs being outsourced to other countries and those already outsourced must be brought back to America and to American workers. Another requirement would be that funds belonging to these corporations can not be placed in offshore accounts, but must remain in American financial institutions. This proposal I believe would lower the jobless rate significantly thus improving the overall economy. When people have jobs, the economy grows. All businesses then become more profitable as the demand for their products becomes greater.
John McCain comes closer than Obama to being able to do this.
Please give me your opinion.
Kenya
Tags: American Economy, Asking The Right Question, Inventions, Middle Class Americans, New Innovations, Retail Markets, Sen Obama, Small Businesses, Stimulus Package, Tax Break, Tax Cuts, Tax Rebates, Tax Relief, Trickle Down Economics, Unprecedented Growth
Are you ready for the Democratic tax hikes?
Written by packagin on April 4th, 2009
Are you ready for the Democratic tax hikes?
When Republicans passed major tax relief packages in 2001 and 2003, we predicted that a booming economy, new jobs for millions of Americans, and an increase in investment and innovation would result. The past several years have proved our theory correct: When government gets out of the way, the American people will get to work.
The 2001 and 2003 tax reductions have spurred more than five years of uninterrupted growth. The economy grew at a robust 3.4 percent in the second quarter of 2007. Productivity growth has averaged 2.8 percent since 2001, considerably above the average of each of the past three decades. Since August 2003, our economy has created more than 8.2 million jobs, and the current unemployment rate is just 4.5 percent, lower than the averages of the 1960s, 1970s, 1980s, and 1990s. Wages have been on the rise, and real after-tax income is up 9.9 percent since President Bush took office, an average of nearly $3,000 per person.
The tax relief has helped produce an economy that has generated higher than expected tax revenues for the federal government. Tax receipts have risen 37 percent over the last three years and are projected to increase another 7 percent this year. These rising tax receipts have, in turn, helped drive down the deficit, which is projected to drop significantly in 2007 for the third year in a row. The deficit this year is expected to measure just 1.5 percent of GDP, considerably below the average of the last 40 years.
The tax relief we passed has had exactly the effect we intended it has spurred growth and innovation and created jobs and opportunities for millions of Americans. But continuing this growth requires continuing the policies that have produced this growth in the first place. Failing to extend the tax relief we have passed would result in a de facto tax hike that could cripple our economy and undo much of the progress we have made over the last few years.
Lowering taxes on income and investment encourages people to work more and invest more, because they get a greater return on their work and investments. This extra work and investment creates new jobs, increases productivity, and encourages innovation and development in other words, produces economic growth, as we saw with the 2001 and 2003 tax relief.
Raising taxes, on the other hand, has the opposite effect. As rates increase, the rewards of labor and investment decrease. People see more of their income and the returns on their investments eaten up by taxes, and this gives them little incentive to work more or invest more. Without new labor and investment, economic growth grinds to a halt, and the economy stagnates.
Unfortunately, Democrats have approved a budget that fails to extend the bulk of the 2001 and 2003 tax relief most of which is set to expire in the next few years resulting in a staggering tax hike of at least $736 billion. Most notably, the Democrats budget fails to extend the lower tax rate on capital gains and dividends and most of the income tax relief weve passed, the two provisions that have done the most to spur the strong economic growth of the past several years.
In addition to this massive tax hike, Democrats on the House Ways and Means Committee are also proposing another growth-stifling tax hike to pay for alternative minimum tax relief, this one a 4 percent tax hike on higher income Americans and small business owners. Almost 20 million Americans will be liable for the AMT this year if Congress doesnt act. While Republicans strongly agree that the AMT must be fixed once and for all so that it doesnt target millions of middle-class families, paying for an AMT fix with a tax hike is not the answer.
Raising taxes on these Americans would place a particularly heavy burden on small businesses, most of which are taxed at the individual level. Small businesses employ half of all private sector employees and have been responsible for 60 to 80 percent of the net new jobs created annually over the last ten years. Burdening successful small businesses with significant tax hikes, as the Democrats plan would do, would jeopardize future economic growth and job creation.
The success of Republican tax relief policies is clear. In contrast, raising taxes by allowing tax relief to expire or by passing burdensome new tax hikes would threaten the progress our economy has made and discourage future growth. Democrats should remember the millions of taxpayers who have benefited from the tax relief weve passed and work with Republicans to extend the tax relief and reject new taxes.
Marlon
Tags: 1980s, 1990s, Current Unemployment Rate, De Facto Tax, Gdp, Government Tax, New Jobs, President Bush, Productivity Growth, Second Quarter, Tax Receipts, Tax Reductions, Tax Relief, Three Decades, Uninterrupted Growth