Random Post Election Thoughts

[GenuineRisk]

Originally Posted by cal828

I'm not the most informed person when it comes to taxes for sure, so somebody tell me:

1. Would there be a "fiscal cliff," if the Bush tax cuts had never been been put in place?

2. If tax cuts were the solution to all our problems, then why aren't we up to our necks in jobs, after said tax cuts were put in place?

1:The tax cuts were the biggest contributor to the deficit, but starting two wars and Medicare Part D didn't help. The big problem is, the tax cuts were passed on the condition that they were temporary, but when it came time to repeal them, the economy was in a deep recession and it was political poison to do so.

And there was no sound reasoning for passing them. Originally it was, "We have a surplus and the economy is going great guns! Ergo, tax cuts!" Then, after the tech market crashed and the projected surplus vanished, it became, "The economy is in trouble! Ergo, tax cuts!"

2: Tax cuts don't create jobs. Demand for products and services creates jobs. I don't understand how the entire nation has been hornswaggled by the tax cuts create jobs ridiculousness. And to create enough demand, you need a large middle class with income to spend.