Wonkissima - Where policy wonks pull nothing over us

This forum will be used to discuss ideas that are not just outside the box but ones that will blow the box away.

Tuesday, September 14, 2010

GOP = tax cuts for the rich: why?

Many Republican senators and congressional representatives - and a few democrats - feel impelled to fight for extending the Bush tax cuts for the richest folks in America - millionaires and billionaires. This idea of rewarding the already wealthy originally became the government's fiscal version of the Nicene Creed under President Ronald Reagan. Some sanity prevailed during the Clinton years and then ... all hell broke lose under "W."
Republicans will swear to you that we must protect our millionaires and billionaires (the Ronald Reagans and George Bushes of the world) so that they can continue their hiring practices that so stimulate the enconomy.
Except the super rich DON'T stimulate the economy by spending or hiring nearly as much as one might think. They buy lavishly to a point. But with their extra money, they save, buy stock, buy real estate. They don't hire another chauffeur or maid or butler where one will suffice. They don't invest in making widgets, they invest in trust funds for their children and grandchildren.
Ordinary folks like the rest of us don't HAVE extra money. When we get a little more than we need for food, fuel and rent, we usually spend it on something frivolous ... like braces for our 12-yer old or a warm winter coat that actually fits the 14-year old that shot up 6 inches last year - or even a few more fresh vegetables during the weekly marketing trip.
These purchases do stimulate the economy because the money is circulating from hand to hand and not sitting quietly in an account somewhere.
In the past two decades or so, the wealthiest 2% of Americans have seen their bottom line rise by over 200%!!! Income levels for the poor and middle class have only risen from 8% to 16%.
We have subsidized the rich's increasing success through OUR INCREASED TAXES to the tune of thousands of dollars per person.
This is called the trickle down theory. Has it been working for YOU and YOUR FAMILY?
Remember in November!!!!

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