Stocks up, consumer spending down; Is Bush plan working?

[Kidlicious]

btw, John Snow is still sticking by his prediction that the tax cuts will create so much growth that the deficits will take care of themselves.

US's Snow: Tax Cuts Put Economy on Growth Path
Wed May 28, 2:12 PM ET Add Politics to My Yahoo!



WASHINGTON (Reuters) - U.S. Treasury Secretary John Snow said the $350 billion in tax cuts President Bush (news - web sites) will sign into law Wednesday will put the economy on a solid growth path and rising deficits will take care of themselves.

[Victor Galis]

The $1000 costs the government 10 times as much

[Victor Galis]

[quotebtw, John Snow is still sticking by his prediction that the tax cuts will create so much growth that the deficits will take care of themselves.[/quote]

-Are you sure this wasn't meant for the stupidest thing people have said thread?

[Giancarlo]

Originally posted by Victor Galis
The $1000 costs the government 10 times as much

And? The $1000 for the middle income bracket will have ten times the effect that a $100 tax cut for a lower income bracket would. Thus more economic growth and that will cover the costs of the tax cut itself.

[Victor Galis]

And? The $1000 for the middle income bracket will have ten times the effect that a $100 tax cut for a lower income bracket would. Thus more economic growth and that will cover the costs of the tax cut itself.

-Yeah, but by that token, why not just give $1000 to the poorest people. You know they don't have everything they need already, so they're more likely to go out and spend it. $100 given to anyone in this country would have no effect.

[Odin]

Originally posted by Kidicious
btw, John Snow is still sticking by his prediction that the tax cuts will create so much growth that the deficits will take care of themselves.

Snow is an idiot.

[Odin]

Originally posted by Victor Galis


-Yeah, but by that token, why not just give $1000 to the poorest people. You know they don't have everything they need already, so they're more likely to go out and spend it. $100 given to anyone in this country would have no effect.

[Kidlicious]

Ten Nobel laureate economists signed a statemment that says this about Bush's tax cut:

Passing these tax cuts will worsen the long-term budget outlook, adding to the nation's projected chronic deficits. This fiscal deteriation will reduce the capacity of the government to finance Social Security and Medicare benefits as well as investments in schools, health, infrastructure, and basic research. Moreover, the proposed tax cuts will generate further inequities in after-tax income.

[Kidlicious]

Originally posted by Victor Galis
[quotebtw, John Snow is still sticking by his prediction that the tax cuts will create so much growth that the deficits will take care of themselves.

-Are you sure this wasn't meant for the stupidest thing people have said thread? [/QUOTE]

It's there

[Giancarlo]

Originally posted by Victor Galis


-Yeah, but by that token, why not just give $1000 to the poorest people. You know they don't have everything they need already, so they're more likely to go out and spend it. $100 given to anyone in this country would have no effect.

That isn't really true. I would say otherwise. Give it to the middle class. And besides being the conservative I am, I will have to stick to that.

That idea you propose is too socialist. Though I wouldn't be against some tax relief for the poor.

[Victor Galis]

I'm not proposing giving the poor $1000, merely saying that if we did, it would be better or the same as giving that to the middle class.

What I really object to is giving the rich a big tax cut at a time when we're in a budget deficit. The tax cut just forces the government to borrow more money, cutting the supply of money and raising interest rates for anyone else trying to borrow money.

[Victor Galis]

What I really would have preffered to see instead, had we been able to afford a tax cut, would have been a provision eliminating the capital gains tax on the first $2,500 or so to encourage middle class investors. I don't think you'll see much willingness to reinvest from the big guys at a time when the economy is still sluggish. More likely, they'll just pocket the money.

edit: Of course I would have liked some income tax cuts for lower and middle class people, but in reality, I don't much like tax cuts when the budget is already deep in the red.

[Giancarlo]

Originally posted by Victor Galis
I'm not proposing giving the poor $1000, merely saying that if we did, it would be better or the same as giving that to the middle class.

In my opinion it is the middle class that deserves it as they are the backbone of the country.

What I really object to is giving the rich a big tax cut at a time when we're in a budget deficit. The tax cut just forces the government to borrow more money, cutting the supply of money and raising interest rates for anyone else trying to borrow money.

Well Bush's tax cuts aren't those.

When the country is in trouble, a good way to stimulate growth is to cut taxes.

[Victor Galis]

Yeah, but I'd rather see taxes cut to people than corporations. Dividend tax cut? Heh, I make like $3.20 in dividends each year, gee thanks. Most stocks nowadays don't even pay dividends. I challenge you to find one person who said "Wow, dividend taxes are so high, I think I'll invest elsewhere." Heck does anyone even look at dividends, when investing anymore?

[Giancarlo]

Well that is your opinion buddy, try not to rub in other peoples faces. I am trying to do that. And besides I do think cutting dividend tax will help the country.