Clearly, writer Ron McDonald hates tax cuts. Fine. However, he cites Bush-era increased debt, rising unemployment, and market plunges as proof they don’t work. While those problems did occur — no Internet verification needed — McDonald’s economic thread linking them to tax cuts is largely absent, leaving only perhaps, his obvious political discontent.
▪ Debt is spending beyond your means. George W. Bush doubled the national debt, in large part, by funding wars in Afghanistan and Iraq, and consequent nation building. Correctly proving that one cannot cut taxes, spend more, and expect to reduce the debt. The 2008 recession exasperated the equation further.
▪ Our markets are simply a measure of investor sentiment. The S&P and other indices dived under Bush due to investor fears - the financial crisis caused by the real estate bubble not because of tax cuts.
▪ The resulting financial crisis, not tax cuts, collapsed the economy, hence business closures and skyrocketing unemployment.
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Tax cuts are designed to increase consumer spending and business investment, thus stimulating the economy. Depending on the economic and geo-political climate, they don’t always work — no more than increasing taxes reduces debt.
President Barack Obama’s administration in a period of military disengagement and reduced military budgets, collected record levels of tax revenue at times and still increased our national debt far more than Bush.
Excessive government spending is and has been the chronic problem, plain and simple. And neither party has demonstrated the political willpower to curb it.
Mars Eghigian, Belleville