Being taxation part of the economy and a helper for the urban development, Will tax cut really help the economy? Who does in the end benefits from it? From high class society to poor class society, the economy of the country where we all live affects us all (not at the same level though). We, as part of a nation, should be looking for solutions in order to maintain a stabilized economy. Some people suggest that if tax cut is directed specifically to just the middle and poor class, this action could stimulate the economy. Tax cut as a tentative proposition as it sounds may not be the best solution to help the economy, as Linda Beale claims: “[]… tax cuts are not the most effective way to stimulate the economy. The affluent will still spend, even if they cut back a small amount: generally, higher taxes merely lead the affluent to save less”. So what if top income earners invest more in business as the proponents of economic policies claim? The probability in economy’s improvement might become higher if it they do invest but who can guarantee us that top income earners will invest more in business? Denisse Unda
As the saying goes "the rich will get richer". It seems that no matter what the government does or the recession we go through, the rich will always be rich because they were rich before the recession anyway. As James K. Galbraith says:
"Is supporting the private consumption of a wealthy minority really a national goal? Is this the motor we wish to drive the economy forward? Should we go on expanding the frontiers of high living, while teachers and police face layoffs and parks and libraries close?"
Why do the government seem to favor the rich class and help them out more while the poor looses out? I seem to remember at one point that the government gave them tax breaks and all these incentives to keep the economy going while we what? Try to find jobs? Keep paying higher taxes? The trickle down effect shouldnt have to trickle down, they should just put it where its needed to go.
It is certain that the government in all aspects is disillusioned in believing that their actions and decisions will inevitably benefit every respective citizen. Nevertheless, their deliberations have led to the economic crisis that has resulted in the loss of jobs and increase amounts of tax cuts. It is rather typical for the U.S. economy to have conceded into an economic downfall that has affected millions of people and will continue on... leading to the increase amount of debt.In the midst of the crisis that the government "unfortunately" got itself in, it desperately attempts to discover a pathway or an escape route that will only contribute to the benefit of the men in black suits rather than the broad population. It seems as if the trickle down economics is a scheme to deceive the population into believing that everything is progressing when rather it is the opposite..
Why is it that we are facing a recession now? If taxes are being cut, where is the money coming from? If The U.S.has so much money , where did it go ? Why did the U.S. have to borrow money from the Chinese? How is the tax cuts theory helping out the economy ? Will trading with other countries affect the economy ? How will workers save money ? Why is the theory just targeting the rich part of society ? why is there a gap between the rich and the poor ? When will there be success ? When will the money start pouring into my pockets to pay off my debt?
Money is show-business. Who hasn't frolicked in trees in their youth wishing to be Robin Hood, to be a pirate? It's glamour. It's the rebel mentality that is so highly entrenched in society through artwork (Fight-Club, anyone?). It seems that the line between a green leotard and a black and white business suit, is very fine. It is the line between fiction and day-to-day, the romanticized rebel and the jail thug. The above scenario relates to U.S. policy in the following way: The poor GIVE away to the RICH (by supporting tax-cuts for them, which take public funds away).
Maybe it is the ghetto mentality of aspiration. "Maybe if I help out Mr.Rich, I will become more like him (rich myself, of course)" This is a twisted mentality which lets those of low-income look away while those with high income stuff money into banks. The tax breaks do not trickle down, they are stored away, effectively making taxes an unfair situation all together, (7% of 20,000 is a big chunk for a family to pay,not much saving is possible. BUT 7% of 200,000 leaves a bit of wiggle room for savings, travel, ponzi scheme investments... )
Why does the tax cut only benefit the high income tax paying family? We have been promised jobs left and right when they have been having these tax cuts. Where is it? How does the minority benefit from these tax cuts? All I see is that the rich is getting richer and the poor getting poorer. When will the poor open their eyes and smell the coffee? William Gale advisement could be used. The question is would they listen to what he has to say and see what use it can do for us citizens. James K. Galbraith has a point when he says “Is supporting the private consumption of a wealthy minority really a national goal? Is this the motor we wish to drive the economy forward? Should we go on expanding the frontiers of high living, while teachers and police face layoffs and parks and libraries close?” That is questions we all will like to get an answer to. When will the economic depression come to an end? If it does end will jobs be reinstated? How would the country recover since we been in debit? Where would the money come from? Launie B.
Who's to say that trickle down economy is the solution to the recession the U.S. is facing now? How could it benefit us? I think that all the arguments presented have not provided sufficient evidence for us to vote for or against such a practice. I disagree with the proponents of Keynesian economics because I would think that the wealthy are more able to afford higher taxes than the poor.
I think that this article is not up to date to what our economy is currently facing. It focuses on events during the Bush administration but our economy has changed since then. I agree with Matthew C. Weinzierl. People who are wealthy are more able to adapt with increase in taxes.
This is such a difficult area to discuss. I truly do not know who benefits from tax cuts. The working poor still doesn't seem to see this action is beneficial. When the cuts are proposed and in effect some group will always be left out which inevitably doesn't seem to enhanced the total America. If we are considered to be the most powerful/richest nation in the world, why don't we all get the same financial advantages. I see that the rich keeps getting richer and the poor tends to stay poor. There's something seriously wrong with this picture. I really don't know if our economy can be and ever will be fixed.
I don't think that a tax cut is the solution to help us out of the recession. One of the people who commented,James Galbraith, ask a very interesting question that we should try to answer: "Should we go on expanding the frontiers of high living, while teachers and police face layoffs and parks and libraries close?"
The post at hand makes one point very clear. Experts state that more money equals more savings and overall, less spending. In a personal analysis while reviewing the validity of what the experts said, i found myself understanding more of where these individuals are coming from. Tax cuts for higher income earners in our economy leads to a greater quantity of private income, allowing for more savings off their part, while also cutting the amount spent in private consumption. To my understanding, american economy runs and continues to be stimulated by the constant consumption of materials by americans. How can it be beneficial to our economic resurection if those with the most resources contribute less than those with scarcely stable resources? A tax cut for lower income individuals would result in a slight increase in personal income, allowing for more savings and resulting in a more stable set of resources for those who need it. Let the ones with the "money to blow" be the stimulants this economy needs to push itself back to the top. What does this emphasis on maintaining higher living while sacrificing the average civilian show for the values americans hold dear?
Did you know that U.S has accumulated a $14 dollar trillion debt by borrowing money from China? This debt is one of the reasons the dollar value has fallen so much, interest rates have risen and the housing market bubble has collapsed. Not to go out of topic, but did you know that this borrowed money was used to finance the pointless, cruel war in Iraq, which as was promised by the Bush administration, is not going to pay for itself? After doing some research, recent reports show that the United States consumers savings rate is negative, meaning is nothing, and to add something to that the adding credit card debt is growing at an alarming pace. Isn't it obvious that this is a recipe for economic disaster since the U.S economy is basically based on the buying of the consumer. So, if we keep misinforming ourselves and supporting the failed trickle down economy that benefits only the rich and won't help boost our economy in this tough times; where do you think once the most powerful country in the world will end up as?
According to Anthony DiMaggio, although massive amounts of cash from the cuts fell into the hands of America’s wealthiest one percent, these elites have looked at the increased volatility of today’s market and decided to hoard the cash instead of investing it. To make matters worse, extending the cuts will result in an additional transfer of $31 billion into the hands of America’s billionaires.
Labor economist Robert Reich argues that tax cuts directed at the rich do little to restore a vibrant economy.
In the following websites you will find some research that supports my statments. You will find four reasons developed by experts that will leave you thinking about why i claim that cutting tax rates for the richest Americans will not improve the standard of living for the working class.
We are partially responsible for the economic issues that we are facing nowadays in our country. And i say is our responsability to do something about it. We cannot learn everything in the classroom. In the age of internet, we have no excuse for our ignorance. Isabel Rodriguez
Extending the Bush-era tax cuts (which got us in the mess we've been in) and any other "trickle-down" measure would just dig our hole deeper. That is to say fundamentally all "trickle-down" theory is spine-less support for the wealthy to tentatively put the money they would save back into the economy. But in today's age when consumer confidence has been wavering for the last 2 years, there's no assurance that the capital would be re-distributed into the economy, moreover more evidence would point to that money sitting in a bank account accumulating interest. The blind spending spree of the Bush administration (which surprisingly isn't brought up too much by the right wing machine) is just as much to blame for the economy's recession as is the housing bubble crash or shady business practices by Wall Street. -Tony Castineyra
Cutting Taxes to the wealthy seems like an attempt to justify a reason to help the rich and hurt the poor. If the wealthier gets wealthier than the gap between the two classes becomes extended causing for socio-economic problems to arise. Trickle down economics must have been proposed by lobbyist to help the rich get richer. I believe what Linda Beale is true that even without tax cuts the rich will continue to spend. If the rich don’t have any constraints to their pocket they will continue to invest more money to increase their capital. Making tax cuts on the rich gives them reason to not spend as quickly because they feel like they had already part taken in a small investment with the tax cut given to them.
James K. Galbraith’s statement; asks if we wish to further the minorities or simply tax cuts and lay off cops and teachers and libraries. Why would you help out juvenescence when cops and teachers would be cut off as we fail to move forward? Why support criminals with wasted tax dollars on each person that’s in there rather than spending it on education and beautifying the land and making a stable economy? It is quite obvious that youth isn’t like before and therefore can’t be counted on. The elderly did raise this country from the start through hardships of life and statuses around the globe so they do know what’s best for the economy; you may never learn the true value of a dollar until you have become an adult and an adult shouldn’t be defined by law as an 18 year old who can become independent and legally buy tobacco, or 21 and buy alcoholic beverages but rather through experiences in life. The reputation of what’s being sold will affect the economy on the demand of the people. Low supply will equal more demand and over quantity of supply will equal low demand. Since the prices would drop to sell, people would get it at a later time and therefore conserve their hard earned money.
the practice of taxation is older than black thread. kings use it , dictators use it, our government uses it. some more than others, canada on average pays more taxes than we do and their not in a financial hell hole. but who really benefits from tax breaks or tax increases anyway? it all seems like you pay more one year pay less the next but your still paying . it all depends what its funding, the U.S uses alot of it nearly 60 percent on the defense cause we need more tanks and jet fighter planes to defend things like other countries (we still keep units in germany for gods sake).Defense against what really? and why do we always vote to spend more and more always out of our wallets? how is it that where the most powerful country and have the biggest debt? apparently our financial strategy is off by a couple zeros and when really have any of these new financial strategies really heped the lower and middle class? it might have something to do with the fact that at the end of the day the people pushing through these taxing laws have an eye on something else and redefine it and sell us a bogus idea. the trickle down effect doesnt work because you can control where it will trickle down to. lets try a old idea more public works projects , build a thing , anything , hire workers and pay them decent wages, open credit lines and get tougher on financial laws and the people that control it.
16 comments:
Being taxation part of the economy and a helper for the urban development, Will tax cut really help the economy? Who does in the end benefits from it? From high class society to poor class society, the economy of the country where we all live affects us all (not at the same level though). We, as part of a nation, should be looking for solutions in order to maintain a stabilized economy. Some people suggest that if tax cut is directed specifically to just the middle and poor class, this action could stimulate the economy. Tax cut as a tentative proposition as it sounds may not be the best solution to help the economy, as Linda Beale claims: “[]… tax cuts are not the most effective way to stimulate the economy. The affluent will still spend, even if they cut back a small amount: generally, higher taxes merely lead the affluent to save less”.
So what if top income earners invest more in business as the proponents of economic policies claim? The probability in economy’s improvement might become higher if it they do invest but who can guarantee us that top income earners will invest more in business?
Denisse Unda
As the saying goes "the rich will get richer". It seems that no matter what the government does or the recession we go through, the rich will always be rich because they were rich before the recession anyway. As James K. Galbraith says:
"Is supporting the private consumption of a wealthy minority really a national goal? Is this the motor we wish to drive the economy forward? Should we go on expanding the frontiers of high living, while teachers and police face layoffs and parks and libraries close?"
Why do the government seem to favor the rich class and help them out more while the poor looses out? I seem to remember at one point that the government gave them tax breaks and all these incentives to keep the economy going while we what? Try to find jobs? Keep paying higher taxes? The trickle down effect shouldnt have to trickle down, they should just put it where its needed to go.
Andreita Espinales
It is certain that the government in all aspects is disillusioned in believing that their actions and decisions will inevitably benefit every respective citizen. Nevertheless, their deliberations have led to the economic crisis that has resulted in the loss of jobs and increase amounts of tax cuts. It is rather typical for the U.S. economy to have conceded into an economic downfall that has affected millions of people and will continue on... leading to the increase amount of debt.In the midst of the crisis that the government "unfortunately" got itself in, it desperately attempts to discover a pathway or an escape route that will only contribute to the benefit of the men in black suits rather than the broad population. It seems as if the trickle down economics is a scheme to deceive the population into believing that everything is progressing when rather it is the opposite..
Why is it that we are facing a recession now? If taxes are being cut, where is the money coming from? If The U.S.has so much money , where did it go ? Why did the U.S. have to borrow money from the Chinese? How is the tax cuts theory helping out the economy ? Will trading with other countries affect the economy ? How will workers save money ? Why is the theory just targeting the rich part of society ? why is there a gap between the rich and the poor ? When will there be success ? When will the money start pouring into my pockets to pay off my debt?
Claudia Hernandez
Money is show-business. Who hasn't frolicked in trees in their youth wishing to be Robin Hood, to be a pirate? It's glamour. It's the rebel mentality that is so highly entrenched in society through artwork (Fight-Club, anyone?).
It seems that the line between a green leotard and a black and white business suit, is very fine. It is the line between fiction and day-to-day, the romanticized rebel and the jail thug.
The above scenario relates to U.S. policy in the following way:
The poor GIVE away to the RICH (by supporting tax-cuts for them, which take public funds away).
Maybe it is the ghetto mentality of aspiration. "Maybe if I help out Mr.Rich, I will become more like him (rich myself, of course)"
This is a twisted mentality which lets those of low-income look away while those with high income stuff money into banks. The tax breaks do not trickle down, they are stored away, effectively making taxes an unfair situation all together, (7% of 20,000 is a big chunk for a family to pay,not much saving is possible. BUT 7% of 200,000 leaves a bit of wiggle room for savings, travel, ponzi scheme investments... )
Why does the tax cut only benefit the high income tax paying family? We have been promised jobs left and right when they have been having these tax cuts. Where is it? How does the minority benefit from these tax cuts? All I see is that the rich is getting richer and the poor getting poorer. When will the poor open their eyes and smell the coffee? William Gale advisement could be used. The question is would they listen to what he has to say and see what use it can do for us citizens. James K. Galbraith has a point when he says “Is supporting the private consumption of a wealthy minority really a national goal? Is this the motor we wish to drive the economy forward? Should we go on expanding the frontiers of high living, while teachers and police face layoffs and parks and libraries close?” That is questions we all will like to get an answer to. When will the economic depression come to an end? If it does end will jobs be reinstated? How would the country recover since we been in debit? Where would the money come from? Launie B.
Who's to say that trickle down economy is the solution to the recession the U.S. is facing now? How could it benefit us? I think that all the arguments presented have not provided sufficient evidence for us to vote for or against such a practice. I disagree with the proponents of Keynesian economics because I would think that the wealthy are more able to afford higher taxes than the poor.
I think that this article is not up to date to what our economy is currently facing. It focuses on events during the Bush administration but our economy has changed since then. I agree with Matthew C. Weinzierl. People who are wealthy are more able to adapt with increase in taxes.
This is such a difficult area to discuss. I truly do not know who benefits from tax cuts. The working poor still doesn't seem to see this action is beneficial. When the cuts are proposed and in effect some group will always be left out which inevitably doesn't seem to enhanced the total America. If we are considered to be the most powerful/richest nation in the world, why don't we all get the same financial advantages. I see that the rich keeps getting richer and the poor tends to stay poor. There's something seriously wrong with this picture. I really don't know if our economy can be and ever will be fixed.
MCozart
I don't think that a tax cut is the solution to help us out of the recession. One of the people who commented,James Galbraith, ask a very interesting question that we should try to answer:
"Should we go on expanding the frontiers of high living, while teachers and police face layoffs and parks and libraries close?"
The post at hand makes one point very clear. Experts state that more money equals more savings and overall, less spending. In a personal analysis while reviewing the validity of what the experts said, i found myself understanding more of where these individuals are coming from. Tax cuts for higher income earners in our economy leads to a greater quantity of private income, allowing for more savings off their part, while also cutting the amount spent in private consumption. To my understanding, american economy runs and continues to be stimulated by the constant consumption of materials by americans. How can it be beneficial to our economic resurection if those with the most resources contribute less than those with scarcely stable resources? A tax cut for lower income individuals would result in a slight increase in personal income, allowing for more savings and resulting in a more stable set of resources for those who need it. Let the ones with the "money to blow" be the stimulants this economy needs to push itself back to the top. What does this emphasis on maintaining higher living while sacrificing the average civilian show for the values americans hold dear?
-Alex Perez Calvo
Did you know that U.S has accumulated a $14 dollar trillion debt by borrowing money from China? This debt is one of the reasons the dollar value has fallen so much, interest rates have risen and the housing market bubble has collapsed. Not to go out of topic, but did you know that this borrowed money was used to finance the pointless, cruel war in Iraq, which as was promised by the Bush administration, is not going to pay for itself? After doing some research, recent reports show that the United States consumers savings rate is negative, meaning is nothing, and to add something to that the adding credit card debt is growing at an alarming pace. Isn't it obvious that this is a recipe for economic disaster since the U.S economy is basically based on the buying of the consumer.
So, if we keep misinforming ourselves and supporting the failed trickle down economy that benefits only the rich and won't help boost our economy in this tough times; where do you think once the most powerful country in the world will end up as?
According to Anthony DiMaggio, although massive amounts of cash from the cuts fell into the hands of America’s wealthiest one percent, these elites have looked at the increased volatility of today’s market and decided to hoard the cash instead of investing it. To make matters worse, extending the cuts will result in an additional transfer of $31 billion into the hands of America’s billionaires.
Labor economist Robert Reich argues that tax cuts directed at the rich do little to restore a vibrant economy.
In the following websites you will find some research that supports my statments. You will find four reasons developed by experts that will leave you thinking about why i claim that cutting tax rates for the richest Americans will not improve the standard of living for the working class.
http://www.faireconomy.org/research/TrickleDown.html
http://seminal.firedoglake.com/diary/71683
We are partially responsible for the economic issues that we are facing nowadays in our country. And i say is our responsability to do something about it. We cannot learn everything in the classroom. In the age of internet, we have no excuse for our ignorance.
Isabel Rodriguez
Extending the Bush-era tax cuts (which got us in the mess we've been in) and any other "trickle-down" measure would just dig our hole deeper. That is to say fundamentally all "trickle-down" theory is spine-less support for the wealthy to tentatively put the money they would save back into the economy. But in today's age when consumer confidence has been wavering for the last 2 years, there's no assurance that the capital would be re-distributed into the economy, moreover more evidence would point to that money sitting in a bank account accumulating interest. The blind spending spree of the Bush administration (which surprisingly isn't brought up too much by the right wing machine) is just as much to blame for the economy's recession as is the housing bubble crash or shady business practices by Wall Street.
-Tony Castineyra
Cutting Taxes to the wealthy seems like an attempt to justify a reason to help the rich and hurt the poor. If the wealthier gets wealthier than the gap between the two classes becomes extended causing for socio-economic problems to arise. Trickle down economics must have been proposed by lobbyist to help the rich get richer. I believe what Linda Beale is true that even without tax cuts the rich will continue to spend. If the rich don’t have any constraints to their pocket they will continue to invest more money to increase their capital. Making tax cuts on the rich gives them reason to not spend as quickly because they feel like they had already part taken in a small investment with the tax cut given to them.
- Miguel Ramos
James K. Galbraith’s statement; asks if we wish to further the minorities or simply tax cuts and lay off cops and teachers and libraries. Why would you help out juvenescence when cops and teachers would be cut off as we fail to move forward? Why support criminals with wasted tax dollars on each person that’s in there rather than spending it on education and beautifying the land and making a stable economy? It is quite obvious that youth isn’t like before and therefore can’t be counted on. The elderly did raise this country from the start through hardships of life and statuses around the globe so they do know what’s best for the economy; you may never learn the true value of a dollar until you have become an adult and an adult shouldn’t be defined by law as an 18 year old who can become independent and legally buy tobacco, or 21 and buy alcoholic beverages but rather through experiences in life.
The reputation of what’s being sold will affect the economy on the demand of the people. Low supply will equal more demand and over quantity of supply will equal low demand. Since the prices would drop to sell, people would get it at a later time and therefore conserve their hard earned money.
Yessica Ardila
the practice of taxation is older than black thread. kings use it , dictators use it, our government uses it. some more than others, canada on average pays more taxes than we do and their not in a financial hell hole. but who really benefits from tax breaks or tax increases anyway? it all seems like you pay more one year pay less the next but your still paying . it all depends what its funding, the U.S uses alot of it nearly 60 percent on the defense cause we need more tanks and jet fighter planes to defend things like other countries (we still keep units in germany for gods sake).Defense against what really? and why do we always vote to spend more and more always out of our wallets? how is it that where the most powerful country and have the biggest debt? apparently our financial strategy is off by a couple zeros and when really have any of these new financial strategies really heped the lower and middle class? it might have something to do with the fact that at the end of the day the people pushing through these taxing laws have an eye on something else and redefine it and sell us a bogus idea. the trickle down effect doesnt work because you can control where it will trickle down to. lets try a old idea more public works projects , build a thing , anything , hire workers and pay them decent wages, open credit lines and get tougher on financial laws and the people that control it.
gabriel tello
Post a Comment