Poor Folks

Okay so everyone says Bush is doing all of these tax breaks for the rich, well who here has ever worked for a poor man? Poor people do not own businesses. If you tax the shit out of the rich people they just rat hole thier cash, but if they are making lots of money, they spend it on their companies and businesses. If the rich are making money it goes down thru the system to the "poor people" working for the "rich people."

[Ryan]

You're figuring out trickle down economics. Well, it doesn't really work that way. This goes right in hand with the histeria around raising the minimum wage - a histeria with no factual historical basis. If a business owner is so unstable that they have to fire someone because their taxes go back to where they were a couple of years ago, then their business is already in serious trouble.

In simple terms, here is the issue: We are going broke as a country and we HAVE to do something now about this debt. The tax cuts are not bringing the government more revenue and the deficit continues to swell. Bush thinks he can just keep cutting taxes and handing out freebies to the country to get him re-elected, but our children are going to pay for it if someone does not stop the man.

Originally Posted by Ryan

You're figuring out trickle down economics. Well, it doesn't really work that way. This goes right in hand with the histeria around raising the minimum wage - a histeria with no factual historical basis. If a business owner is so unstable that they have to fire someone because their taxes go back to where they were a couple of years ago, then their business is already in serious trouble.

So - those marginal businesses should be gleeful that the govenment legislates them out of business?

Tends to impact the small family business hardest.

Originally Posted by Ryan

In simple terms, here is the issue: We are going broke as a country and we HAVE to do something now about this debt. The tax cuts are not bringing the government more revenue and the deficit continues to swell. Bush thinks he can just keep cutting taxes and handing out freebies to the country to get him re-elected, but our children are going to pay for it if someone does not stop the man.

The tax cuts DID result in an immediate reduction of revenues. However, the downturn in the economy and greatly increased spending fueld the deficit in a much more meaningful way.

Tax cuts help stimulate the economy - growing it - providing a larger tax base.

Spending... needs to be reeled in to be sure.

[Satchel]

Stop spending on misguided and unnecessary wars might be a good start.

[TheHawk]

Originally Posted by xiannaix

So - those marginal businesses should be gleeful that the govenment legislates them out of business?

Tends to impact the small family business hardest.

no, because those businesses are barely taxed, I own a small business and I didn't get shit for a tax break, so going back wouldn't be a change at all for us.

Originally Posted by xannaix

The tax cuts DID result in an immediate reduction of revenues. However, the downturn in the economy and greatly increased spending fueld the deficit in a much more meaningful way.

Tax cuts help stimulate the economy - growing it - providing a larger tax base.

Spending... needs to be reeled in to be sure.

tax cuts help stimulate the economy when the consumers get the tax cut, because the consumer has more money to spend. Bush's tax cuts are corporate. Giving more money to the people doing all they can to horde all the cash possible isn't the solution.

Originally Posted by TheHawk

no, because those businesses are barely taxed, I own a small business and I didn't get shit for a tax break, so going back wouldn't be a change at all for us.

The comment was in reference to raising the minimum wage not payroll taxes etc.

Originally Posted by TheHawk

tax cuts help stimulate the economy when the consumers get the tax cut, because the consumer has more money to spend. Bush's tax cuts are corporate. Giving more money to the people doing all they can to horde all the cash possible isn't the solution.

who do you think owns corporations? And, are you suggesting that corporations cannot be consumers? I wager that businesses buy lots of stuff.

[TheHawk]

Originally Posted by xiannaix

The comment was in reference to raising the minimum wage not payroll taxes etc.



who do you think owns corporations? And, are you suggesting that corporations cannot be consumers? I wager that businesses buy lots of stuff.

Well run businesses buy as little as possible without neglecting necessary spending. Consumers tend to spend as much as they can. No one's in business to spend money, they're there to make it.

Originally Posted by TheHawk

Well run businesses buy as little as possible without neglecting necessary spending. Consumers tend to spend as much as they can. No one's in business to spend money, they're there to make it.

Consumers spend disposable income in greater amounts when they have more of it - that's a truism

Businesses buy goods and services in order to conduct their business - lots of them. Think of raw materials, processing, delivery, advertising etc etc

[TheHawk]

Originally Posted by xiannaix

Consumers spend disposable income.

Businesses buy goods and services in order to conduct their business - lots of them. Think of raw materials, processing, delivery, advertising etc etc

without an increase in demand, there's no need for increased spending. Supply and demand, basic econ.

Originally Posted by TheHawk

without an increase in demand, there's no need for increased spending. Supply and demand, basic econ.

sure - and that's where the tax cuts come in - with more cash on hand - one may spend more (be they individual or corporation) - it doesn't command demand - it provides for the opportunity to indulge in it

[johnny861]

Originally Posted by TheHawk

Well run businesses buy as little as possible without neglecting necessary spending. Consumers tend to spend as much as they can. No one's in business to spend money, they're there to make it.

Big Businesses also diversify their spending, not putting their eggs in one basket like many small businesses do by keeping ties to the same vendors most or all of the time. In many cases, they fuel the local economy. Lockheed, Boeing, Nortel, Intel, etc... Does Nortel do all their eletronics schematics in house? or with one engineering firm? No, they spread the work out over a dozen smaller engineering firms.

Bottom line, money must flow for it to be of any value. Big businesses know this, economists know this, politicians should know this...

Money shouldn't just sit in some bank vault.. it needs to be invested, it needs to shift around, to flow... otherwise, it's worthless... and if entities are reluctant to spend it, then the economy slows...

People seem to speak of money as if it was some tangible thing... it's not... It's simply a medium of exchange and is used only as a measure of the goods and services on the market. It is only valuable when it is used.

If money completely stopped flowing, nothing would have monetary worth, not you, me, not walmart, nor Jay Leno's warehous of cars...

So, it's easy to see when entities are reluctant to spend money, the economy goes down, job salaries decrease, etc, etc...