Posts with the tag 'economics'
In the Democrat’s ABC debate Senator Obama stated he would raise the Capital Gains Tax even though it would adversely effect the economy because of ‘fairness’. Senator McCain, and Republicans in general, favor keeping this tax rate low because it has been concusively proven that a high Capital Gains Tax slows the economy, and that the government actually takes in more in money when the rate is kept low, as people will invest less if the tax rate is burdensome. Senator Obama’s statement points out the trouble Democrats have with economics. The idea that increasing tax rates on the wealthy, particularly when the economy is sagging, because of fairness shows a lack of economic understanding. An increase in taxes slows economic growth. The people hurt most by a struggling economy are middle to lower middle class people who are already working hard to make ends meet. The wealthy will still be wealthy, but middle class workers will struggle. This is strikingly unfair.
The rationale behind keeping taxes low on the upper class has been explained and marketed poorly. The term ‘trickle down economics’ has a demeaning ring to it. The idea that the rich pay too much, does not engender sympathy. Few have been given a clear explanation about why low taxes stimulate growth. However, one would hope presidential candidates would understand how taxes effect the economy. Senator Mccain has been the only candidate to date to show this understanding. What’s fair for the American people of all classes is to have a president that understands how the economy works, and has an intelligent plan to put the economy back on solid ground.
Tags: capital gains tax, economic undersatnding, economics, economy, low taxes, mccain, middle class, middle class america, Obama, presidential candidates, solid economy, tax and spend, tax the rich, tax the wealthy, trickle down economics
April 21st, 2008
I noted in Republicans Economics 101 that the McCain campaign needs to do a better job at explaining why Republican economics work. Personal responsibility is the key element that needs to be addressed. There has been much talk about how the candidates would fix the mortgage crisis, and for the Democrats this consists of bailouts. However, actions have consequences, and irresponsibility should not be rewarded. The challenge is that opposing bailouts is often portrayed as uncaring or greedy. In reality these bailouts punish responsible people. Encouraging wastefulness and government dependance harms the economy and society as a whole. There is a role for government when people have been duped, or have extreme circumstances, but the idea that government is supposed to fix my life if I mess up is both poor economics and condesending.
Tags: bailouts, economics, economy, mccain, mortgage crisis, personal responsibility, responsible
April 4th, 2008
The media has latched on to a inaccurate narrative for Senator McCain. Due to one comment he made about being stronger in matters of foreign policy than economics, and one comment that was intended as a joke; Senator McCain is being portrayed as weak on the economy. The most common jab taken is a criticism about his position on the Bush Tax Cuts. The media may have a field day with this issue when taken out of context. However, if his position is looked at in detail it is consistent and logical. The initial opposition to the tax cuts came from a desire to include spending restains, and his concern about how the tax cuts would be distributed across different economic brackets. Also, he had his own tax cut package that he was pushing at the time that he obviously prefered to the Bush Tax Cuts. Now that he supports making the tax cuts permanent he is being criticized for changing his position. However, circumstances are different, and rolling back tax cuts that have been in place for years acts as a tax increase. Increasing taxes when the economy is sluggish is simply poor economics. Tax increases slow the economy, and while the Bush Tax Cuts may not have been structured exactly how Senator McCain would have liked, basic economic principles show this to be a wise decision.
Also, his initial concern with the bill’s lack of spending restraints clearly was justified. Senator McCain has railed against pork barrel projects for years, and consistently votes against these bills. He also stronly opposes bills that create an unfunded liability that will burden generations to come. Finally, Senator McCain has been a consistent and strong advocate of free trade, even to the point of opposing ethanol subsidies in Iowa which many thought it was political suicide.
On the other hand, Democrat candidates are telling people what they want to hear, but not offerring sound economic solutions. Railing against free trade agreements and arguing for tax increases on ‘the rich’ is not sound economics. Deregulation and low taxes help stimulate an economy, and arguing strongly for significant increases in regulations and taxes may win votes, but won’t help the country’s economy.
Tags: bush tax cuts, economics, economy, John McCain, media, spin, tax cuts
March 7th, 2008
