I’m writing a short essay on this subject. I’ve already formulated my own answers, but I’d like to hear some other opinions in order to organize my thoughts a little better.
•Have the major tax cuts of 2001 accomplished their intended goals?
•How do the Republicans and Democrats differ with respect to their views on enacting further tax cuts?
•Do you agree with the policy of cutting taxes as a means of stimulating
1. Yes, they made the rich richer. That was Bush’s goal.
They also made the U.S. poorer. There is evidence that that was also a Republican goal.
2. Republicans want tax cuts at all costs, including increased budget deficits. The Democrats like the political theater that tax cuts provide but know that they are bad for the economy and bad for society.
3. Permanent tax cuts, such as those of 2001, are the worst way of stimulating the economy. Increasing unemployment insurance, food stamp programs, infrastructure investment, etc. are all better than tax cuts.
And within tax cuts, temporary tax cuts on payroll taxes are better than any permanent tax cuts by more than a factor of 4: