Nevada’s Senator, John Ensign, blamed the Democrats for the Republicans opposing the middle class tax cuts by saying:
“Today we witnessed that political stunts are still alive and well on the floor of the United States Senate. At a time when both sides of the aisle could and should be working together to ensure that we are not raising taxes on Americans during this economic downturn, Democrats are playing games. By setting arbitrary income limits for tax relief, our nation’s job creators will be forced to suffer under increased taxes; greatly limiting their ability to create jobs for the many unemployed people across our country. The American people expressed their outrage at this kind of wasteful legislating, but their voices have fallen on deaf ears in the Senate.”
Let’s look at that comment for a moment.
Say you are the CEO of a big corporation and taxes on every dollar over one million dollars was 90%. Would you take lots of money out as income and give 90% to the country? No, probably not. You would probably keep most of the money in the business where you can use it to reduce your taxes by claiming expenses. Keeping the money in the business is like money in the bank. You can take it any time you want.
Now let’s add in a competitor. This makes it even more realistic since most businesses have competitors. If you took your money out of the company (and paid high taxes) and your competitor put his money back in the business, which of you would be going out of business?
So, ask yourself, does it help the economy when people keep their money in their businesses or when they take it out of the company? It seems pretty obvious doesn’t it? The business that is reinvested in becomes more valuable and provides more jobs. The company that takes the money out in profits and taxes hurts the economy by losing jobs.
Let’s play along with this scenario just a bit further. If it is good for the economy to have lower taxes on the rich, then why did lowering the taxes on the rich cause recessions and depressions every time? Remember reading about the roaring 20s? That was a time when the taxes on the super rich were reduced into the 20% range. What happened right after that? The Great Depression. What happened right after Reagan lowered taxes on the super rich? The Reagan Recession and bank failures. What happened when Bush lowered the taxes on the rich? Possibly the second Great Depression in a century. See a graph of top tax rates and compare the dates with 1) the Great Depression and 2) the steady decline of our economy since the 1980s.
If you stick your finger in a light socket and get hurt, would you stick it right back in there? No, probably not. Then why would you vote for a candidate that wants to put the country’s finger right back in that tax-breaks-for-the-rich light socket?
It’s really not that hard to understand.
And one last point. The Republicans have been using and abusing procedures for the past three years trying to obstruct everything the Democrats try to do. They have broken all records for filibustering. That’s how they used procedure abuse to stop this last attempt to fix our broken tax system. They abuse the political system and then go and lie to us about how the Democrats are abusing the system.
Ah, the party of lies. If we want to save our country we’ll have to start pushing back and exposing the lies. After all, ALL the Republican congressmen are chanting the same lies. After all, the lies were tested out on the blind followers before being released to the talking heads.