Monday, April 23, 2012

Republicans propose unjustified tax cuts

Source: The Economist
The national debt peaked as the United States fought World War II, and was largely paid off by FDR, Truman, Eisenhower, Kennedy and LBJ, Nixon and Carter. Then came the Reagan-Bush I revolution which cut taxes (as shown above) and started a huge rise in the national debt. Clinton started to cut the debt, but then came Bush II and his wars. Since Bush II failed to pay for his wars insisting on low taxes instead, the debt started up again and then rose very rapidly. Obama, trying to end two Bush wars, while dealing with the Great Recession, and a Republican House of Representatives that blocks tax increases, is seeing a continuing increase in national debt.

The Obama proposed return to slightly higher taxes would be consistent with continued economic growth (especially if combined with Obama's proposals to fund education, infrastructure and science and technology), and would still be much lower than the traditional tax rates in most of the second part of the 20th century. I would prefer still more progressive taxes, but surely let us avoid the Republican proposed giveaways! Their arguments that tax cuts for the wealthy create employment are flawed -- experience shows that they only create employment for Republican politicians in the long run.

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