Extend or Repeal Bush Tax Cuts?

In today’s Albuquerque Journal, I am quoted on the issue of President Bush’s tax cuts and Congressional Democrats’ moves to raise taxes by allowing some or all of those cuts to expire. Simply put, as I’ve written before, the main issue is out-of-control spending, but raising taxes will not help our economy and is simply a cover for higher spending.

Left-wing New Mexico-based economist, Larry Waldman, senior research scientist at the University of New Mexico’s Bureau of Business and Economic Research, is all for higher taxes. He “thinks wealthier Americans can afford to pay more taxes — and the cash-strapped federal government could use the money. It’s more of an equity issue than an economic issue,” Waldman said. “The rich are not suffering nearly as much as the middle and lower classes.” Waldman seems unconcerned about spending or the fact that higher taxes will stifle economic growth, thus harming the very middle and lower-income taxpayers he claims to defend.

Unfortunate advice in support of bigger government and reduced economic prosperity from a guy who is supposed to “contribute to the economic well-being of New Mexico residents.”

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6 Replies to “Extend or Repeal Bush Tax Cuts?”

  1. I support Obama on this issue which is to repeal the cuts for those earning under $200,000 (for a single filer) and allow those at the top to pay more.

    America is broke – and getting broker. No party has the guts to rein in spending. When was the last time we had a balanced budget? It almost happened in the late 90s under Clinton but Bush took seconds to take us back to big deficits despite good economic times. And please, readers don’t tell me the near balanced budget under Clinton was the republicans doing. It was both parties. You forget, in 1993 the dems raised taxes which caused them to be bounced out of office in 1994. But that tax revenue during the tech boom brought inflows and outflows to near balance.

  2. How many jobs have these tax cuts created so far? Not very well.

    Bush was the worst President for job creation and after more tax cuts in the stimulus bill (yes, they’re there despite the Rio Grande Foundation pretending they aren’t), jobs still aren’t going anywhere.

    So where is your evidence that more tax cuts = more jobs?

  3. I’m with you Richard. Although supporters of Reagan and GW Bush claim tax cuts generate more revenue for the Treasury, I don’t buy it. They point to Laffer’s Curve as evidence but that model has a single variable – level of taxation. Is our economy so simple? What about the impact of other factors such as interest rates? Spending? In any case, under both Reagan and GW – our national debt ballooned, more than doubling under Reagan and nearly doubling under GW.

    The stimulus package contained $288 billion in tax incentives. That part is rarely mentioned.

  4. The Republicans drafted and passed, and Bush signed, the legislation which calls for the cuts to expire. If they expire, they do so according to Republican law, not anything which Obama or the Democrats have done. The sunset provision was a gimmick to get the law passed in the first place.

  5. You can collect all the taxes you want to. You can simply steal every bit of money everyone has but unless you SPEND LESS, you will never have a balanced budget. Stop spending so much money. When I run out of money at home, I stop buying things. Our run-amok federal government, which can simply crank up printing presses and print more fiat money to pay for it’s excesses, NEVER stops spending. And since the government can print money, it can never go broke. We the sheeple on the other hand WILL go broke someday because the money will become so worthless it won’t buy anything. So then we will truly be serf on the plantation.

  6. I think Obama’s economic team has it right. By letting the tax cuts remain for the lower 250k income level, it will continue to stimulate the economy. Lower income level persons spend which cause the money multiplier effect to stay into place. Higher income persons typically invest the tax savings, which would be good except that they are investing in China and other countries more than America according the the Wall Street Journal. That is bad. I say if they won’t invest in America, we should take the money back and invest it through infrastructure improvements.

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