Surprise move on tax cuts by Obama

[Schneed10]

Originally Posted by Chico23231

Dont want to hear any b*tching by the right about deficit anymore.

Poor thinking for a number of reasons:

- Tax revenue is only part of the story when it comes to deficits, the other big one being spending. The onus is now on the Republican-led congress to propose spending reductions to bring spending in line with tax revenue and balance the budget. And in turn, the onus will then be on Obama to approve them, or come up with some other way to balance the budget, or he'll be labeled as a spender.

- The whole point of keeping taxes low for the rich is to spur investment and economic growth. As more people get hired and more businesses grow, the more tax revenue the government will bring in. Rising tides raise all boats. Tax revenue isn't just about the rate at which income is taxed, it's also about the number of people and business that have an income to tax.

If you get unemployment down from 10% to 5%, you just increased the number of taxpayers by 5%. Growing the economy in a sustainable manner (ie not through one-time stimulus) is key to balancing the budget.