We Should let the Bush Tax cuts Expire

[3rdnlng]

I don't give a !@#$ how they feel. I would like them to think. God forbid they apply some basic math and reason to the situation.

 

 

When Ronald Reagan became President we had interest rates above 18%, extremely high inflation and unemployment, along with (if I recall correctly) high deficits. Right now we have the high unemployment and out-of-this-world deficits. I suspect the government will just print one hell of a lot of money thus causing inflation to rise along with interest rates. This might put us in similar circumstance to 30 years ago. We got the economy turned around by cutting taxes and reducing nonproductive spending while at the same time increasing productive spending. We can't forget though the tremendous impact that Reagan's spirit, confidence and sheer will had on the country. People gained confidence from him and had hope for a better future. That confidence spilled over to the business world and the economy started to turn around. It took awhile, but set things up so that we actually had a few years of budget surpluses in the "90s. Can we have a repeat? I don't know, I don't pretend to be anything close to an economist. There are people on this board far wiser than me when it comes to this area. It does seem like a plan though.

[Rob's House]

When Ronald Reagan became President we had interest rates above 18%, extremely high inflation and unemployment, along with (if I recall correctly) high deficits. Right now we have the high unemployment and out-of-this-world deficits. I suspect the government will just print one hell of a lot of money thus causing inflation to rise along with interest rates. This might put us in similar circumstance to 30 years ago. We got the economy turned around by cutting taxes and reducing nonproductive spending while at the same time increasing productive spending. We can't forget though the tremendous impact that Reagan's spirit, confidence and sheer will had on the country. People gained confidence from him and had hope for a better future. That confidence spilled over to the business world and the economy started to turn around. It took awhile, but set things up so that we actually had a few years of budget surpluses in the "90s. Can we have a repeat? I don't know, I don't pretend to be anything close to an economist. There are people on this board far wiser than me when it comes to this area. It does seem like a plan though.

 

You raise a good point. One key difference here is that when Reagan took office the top marginal tax rate was over 70%. He cut that to 50% and then again to 28% which moved us to a much more productive spot on the Laffer curve. Since man hasn't clearly determined the exact slope of the Laffer curve it's hard to say where exactly is the most optimum point, but tax rates today are much more inline with that, thus we shouldn't expect as much of a boost in productivity simply due to cutting taxes. At this point it's vital that we drastically cut spending before we become the Weimar Republic.

 

http://en.wikipedia.org/wiki/Laffer_curve

 

p.s. I dig your signature line.

[GG]

When Ronald Reagan became President we had interest rates above 18%, extremely high inflation and unemployment, along with (if I recall correctly) high deficits. Right now we have the high unemployment and out-of-this-world deficits. I suspect the government will just print one hell of a lot of money thus causing inflation to rise along with interest rates. This might put us in similar circumstance to 30 years ago. We got the economy turned around by cutting taxes and reducing nonproductive spending while at the same time increasing productive spending. We can't forget though the tremendous impact that Reagan's spirit, confidence and sheer will had on the country. People gained confidence from him and had hope for a better future. That confidence spilled over to the business world and the economy started to turn around. It took awhile, but set things up so that we actually had a few years of budget surpluses in the "90s. Can we have a repeat? I don't know, I don't pretend to be anything close to an economist. There are people on this board far wiser than me when it comes to this area. It does seem like a plan though.

 

Unfortunately, the one GOP politician who is playing the role of Reagan in 1980, is Sarah Palin.

 

(Oh oh, someone just exploded on a keyboard in Love Canal)

[3rdnlng]

Unfortunately, the one GOP politician who is playing the role of Reagan in 1980, is Sarah Palin.

 

(Oh oh, someone just exploded on a keyboard in Love Canal)

 

Yes, she does need a little more seasoning, but I admire her confidence and character.

[IDBillzFan]

When Ronald Reagan became President we had interest rates above 18%, extremely high inflation and unemployment, along with (if I recall correctly) high deficits. Right now we have the high unemployment and out-of-this-world deficits. I suspect the government will just print one hell of a lot of money thus causing inflation to rise along with interest rates. This might put us in similar circumstance to 30 years ago. We got the economy turned around by cutting taxes and reducing nonproductive spending while at the same time increasing productive spending. We can't forget though the tremendous impact that Reagan's spirit, confidence and sheer will had on the country. People gained confidence from him and had hope for a better future. That confidence spilled over to the business world and the economy started to turn around. It took awhile, but set things up so that we actually had a few years of budget surpluses in the "90s. Can we have a repeat? I don't know, I don't pretend to be anything close to an economist. There are people on this board far wiser than me when it comes to this area. It does seem like a plan though.

What you fail to realize is that Reagan would have never been able to turn the economy around if he didn't inherit Paul Volker from Carter. If Carter didn't have the foresight to appoint Volker in 1979, Reagan would be nothing more than an obscure reference in a Die Hard sequel.

[3rdnlng]

What you fail to realize is that Reagan would have never been able to turn the economy around if he didn't inherit Paul Volker from Carter. If Carter didn't have the foresight to appoint Volker in 1979, Reagan would be nothing more than an obscure reference in a Die Hard sequel.

 

Good leaders aren't afraid to hire/retain good people. Reagan had a unique ability to inspire.

[IDBillzFan]

Good leaders aren't afraid to hire/retain good people. Reagan had a unique ability to inspire.

Reagan didn't do jack. If Carter didn't hire Volker, Reagan would have failed.

[EC-Bills]

What you fail to realize is that Reagan would have never been able to turn the economy around if he didn't inherit Paul Volker from Carter. If Carter didn't have the foresight to appoint Volker in 1979, Reagan would be nothing more than an obscure reference in a Die Hard sequel.

 

One of the few things Carter actually did right during his term.

Edited July 16, 2010 by EC-Bills

[3rdnlng]

Reagan didn't do jack. If Carter didn't hire Volker, Reagan would have failed.

 

Who's to say Reagan wouldn't have hired him? I can't remember not agreeing with you. You are generally "spot on" but in this case I guess I just have a much higher opinion of the man than you do. He was a real leader who could communicate and get the public behind him. He used the "Bully Pulpit" to get his ideas across and the population made sure that their lawmakers knew what they wanted. Did Volker set in motion the ending of the cold war? If you have ever listened to any of his speeches prior to him becoming President you would know that he didn't get his ideas from Volker.

[Magox]

Who's to say Reagan wouldn't have hired him? I can't remember not agreeing with you. You are generally "spot on" but in this case I guess I just have a much higher opinion of the man than you do. He was a real leader who could communicate and get the public behind him. He used the "Bully Pulpit" to get his ideas across and the population made sure that their lawmakers knew what they wanted. Did Volker set in motion the ending of the cold war? If you have ever listened to any of his speeches prior to him becoming President you would know that he didn't get his ideas from Volker.

errrm errrm

 

 

sacrcasm

[IDBillzFan]

errrm errrm

 

 

sacrcasm

Yeah, I was just being a wiseass. Some liberal choad was trying to pass this whole "If it weren't for Carter, Reagan would have failed" concept here a week or so ago, and I was just mocking them.

[Jim in Anchorage]

Yeah, I was just being a wiseass. Some liberal choad was trying to pass this whole "If it weren't for Carter, Reagan would have failed" concept here a week or so ago, and I was just mocking them.

It was Conner of course. In fact he claimed Carter fixed inflation

[Magox]

It was Conner,of course.

Actually it was dave from numbnutville

[3rdnlng]

Yeah, I was just being a wiseass. Some liberal choad was trying to pass this whole "If it weren't for Carter, Reagan would have failed" concept here a week or so ago, and I was just mocking them.

 

I feel like "redeemed" or something. I have a lot of respect for many on this board. I'm glad I didn't have to cross you off my list. Seriously, we can all learn from each other---I know I have.

[Jim in Anchorage]

Actually it was dave from numbnutville

Yeah thats right. From ranking the presidents. I am sure Conner approved though.

[3rdnlng]

Yeah thats right. From ranking the presidents. I am sure Conner approved though.

 

 

Is Obama number one yet? He's accomplished so much and really put this country on the right track.

[Alaska Darin]

Bull.

 

We didn't have this Health Care Bill that we have now

Duh. Welcome to why they don't get anymore money.

we didn't have the significant permanent loss of tax revenues that this crisis has brought us, the Bush Tax cuts added to our debt problems.

There's no way to know with certainty if the tax cuts added to the debt. That's like believing a CBO projection.

The Bush Medicare prescription drug giveaway that has added hundreds of billions to our debt, the Wars in Iraq and Afghanistan that has cost the taxpayers $1 Trillion. These are all developments that occured over the last 10 years.

You continue to make my point.

No one here is arguing that Entitlments are the main fiscal drains of this economy, but to argue that our debt crisis isn't considerably closer due to the reasons I just mentioned is absurd.

The debt "crisis" isn't new. People are simply paying attention to it because the idiots in charge continue to make the same mistakes over and over again and the cumulative effects of all the corruption are finally hitting a significant portion of Main Street. None of which changes my original point of the government not getting another dime from productive citizens until they figure out how to live on the $.20 of every dollar they touch now. You're talking about doing even further damage to the economy, which is teetering on the brink of an even deeper recession.

In regards to the outcome? My guess is that our elected leaders will !@#$ up and we will go through a debt crisis. Why? Because Liberals won't want to cut spending without compromise. And the GOP won't want to cut taxes. GRIDLOCK.

The GOP won't cut spending, either. They'll pay lip service to it, just like they always do. There are so few differences between the parties that it isn't even worth discussing the options of "either/or" anymore.

[Jim in Anchorage]

Is Obama number one yet? He's accomplished so much and really put this country on the right track.

Still #15, but when he rams cap and trade down our throats like heath care I am certain the pointy headed academia in their ivory towers will elevate him to #1.

[Chef Jim]

I thought the cuts were only for the rich.

 

Tax Brackets

EGTRRA created six tax rate brackets – 10%, 15%, 25%, 28%, 33% and 35%, based on income levels. If no extension is passed and signed into law, then the pre 2001 tax rates will go back into effect starting in tax year 2011. The 10% bracket would disappear, and those taxpayers would move up to the 15% bracket, which would apply to all incomes below $34,550. The other tax rates would increase to 28%, 31%, 36% and 39.6% for the highest earners making more than $379,650.

 

Child Tax Credit

One major provision that will expire at the end of 2010 is the child tax credit, which EGTRRA doubled from $500 to $1,000 per child. Unless Congress votes to extend the child tax credit, the maximum amount will revert back to $500 for tax year 2011, and the number of families eligible for that amount will be much less as tougher eligibility standards that existed prior to EGTRRA will go back into effect.

 

[keepthefaith]

I thought the cuts were only for the rich.

 

 

 

 

That's been the chirp of liberals for years. I'm convinced that when this issue is taken up in Congress, some that hold office will learn for the first time that the cuts benefitted nearly everyone.