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Tax cuts during wartime
Is anybody else bothered by this? It is probably my biggest issue with McCain's tax policy. During a time of war, people are generally asked to tighten their belts and contribute financially to the war effort. I'm not in favor of going back to WWII-era marginal tax rates, but when we are engaged in an indefinite conflict, I don't understand why people expect a tax cut. I guess I'm still a little pissed off from reading and watching Generation Kill; the Marines who Evan Wright was embedded with went into Iraq in unarmored Humvees, without enough batteries for their night vision goggles and lacking other supplies. And I guess I am also bothered that a lot of the people I know who have been the most vocal supporters of the war in Iraq are also the most vocal supporters of tax cuts - where do they think the military is supposed to get funding from?
Like a lot of other people, I think both candidates' promises of enacting tax cuts are pipe dreams at this point. A $700 billion bailout AND the war? Money's gotta come from somewhere, you betcha. I am more OK with Obama's plan because his plan wouldn't decrease the government's revenue but would simply shift its source.
Tax cuts + war does not compute in my world. Am I the only one who feels this way?
Re: Tax cuts during wartime
I think it just furthers the notion that Congress and the President want people to think -that taxes<>revenue and war<>spending. I think they've spent a lot of time trying to convince Americans that taxes and spending are so much more complicated than we are capable of understanding. It's almost laughable how successful they have been at perpetuating this notion. Forget showing patriotism through tightening your belt; Americans really can have it all. Until they go broke.
I 100% agree with you.
First, BOTH candidates are proposing tax cuts. Only 1 candidate (McCain) is proposing tax cuts in strategic places that will result in higher revenues, or at least a positive feedback that will pay for a significant portion of the cut. Obama wants to cut taxes for people who pay nothing already. That does nothing but grow the deficit.
Second, the reason people support tax cuts is b/c the economy sucks and lowering taxes is the easiest way to incite some growth and productivity.
Third, high spending (like during a war) and high taxes =/= balanced budget. You might remember that during WW2 with the top marginal income tax rate of nearly 100% and we had a deficit of approx 120% of GDP. (currently it's less than 40%)
Taxing the rich to pay for the poor is a lovely class warfare theory that fails in reality every time b/c it precludes economic growth, incentive and production which results in less tax revenues. In an economy like the one we have now we can't afford to punish the successful. We need them to get us through this. Deficits are annoying and a bad precedent but they aren't the end of the world. We can pay off a 40% deficit if we can pay off a 120%. The way to do that is by growing the economy which brings in more revenues and halting the massive growth in spending, and cutting it as much as possible.
Also, the war is not the reason we have a deficit. It's a small portion of the budget and an extremely small portion of GDP (about 1% of GDP at its peak which is now past). We have a budget problem b/c we can't afford the entitlement programs. Health & Human services and Social Security are the #1 & #2 federal budgets.
Amen!
I was trying to explain something similar to DH last night regarding taxing the wealthy as Obama suggested. The wealthy right now are the only ones who can afford the luxury items that keep many Americans with jobs. Also they have excess money to invest again helping our economy.
Tax the rich and they will cut back on investing and spending.