As David Stockman, the architect of Reaganomics explains in his books and articles, there is a time and place for tax cuts, but its use is limited and any political religion based on cuts is a perversion even from the original Reaganomics. Stockman will also tell you Reaganomics was a failed policy that led to soaring deficits. An Internet search on David Stockman will provide many articles, or read the middle of this article.
Stockman said the recently approved tax relief for the rich is misdirected, but was an unfortunate outcome of republicans holding all other legislation hostage without passing them.
The fact is, government spending does create jobs as well as return some control of the country’s financial might to the people who help earn it, the working class. Without the working class, the country’s upper class would not exist, yet, it is the upper class controlling the purse strings and who often (not always) chooses raises for themselves while fighting raises for others. As for tax burden, richer people find many ways of paying lower tax percentages while low to middle class families don’t qualify for most, if any, of tax breaks. It’s just not true that we’re making the rich pay for everything.
Taxes pay for roads, hospitals, schools & universities, firemen, police, disaster relief, and all kinds of administrative support such as safe keeping of our land records so nobody can sneak land out from under another. Taxes also support investment in industry. Obama wants to spend money on repairing our aging infrastructure, and wants to redirect oil subsidies toward greener technologies so America will be a leader in this infant industry, not just other countries. If you want to benefit even more from taxes, invest your business into American infrastructure or green technology so the government will pay you and will reinvest your taxes back into you.
Republicans are right to spend money on some industries, so let’s spend money on growing industries still in their infancy instead of spending it on aging, waning industries like oil. Democrats are right to spend money on repair and improving our country’s infrastructure to benefit business and individuals now and in the future. Republicans are right to put money toward war costs, but enough money needs to go toward taking care of our veterans, not more none-compete contracts for Halliburton. They voted for war in Iraq with Rumsfeld saying it wouldn’t last 6-months, but they had no plans to pay for the residual costs.
The last 30 years show republicans are not conservative or small government when it comes to their party’s wish list, and they don’t want republican financiers to pay for it either. However, we need to pay our expenses through taxes. The fact is, the richer a person is in this country, the more they benefit from our country’s infrastructure, so they should pay more than the person working 2 jobs and just staying afloat. Richer people have huge cushions to last through unemployment while the poor and middle class people have little to no cushion to handle unemployment.
The government helps maintain private spending by ensuring all families have some money to spend. Private spending keeps our businesses afloat to continue providing jobs. There is no way around this.