Thursday, January 29, 2009

Parrots and Tax Cuts

No Republicans in the House supported Obama's stimulus package. None. Instead, Republicans choose to stick to the same old lines like parrots.

Let it be said. Tax breaks does not, generally, act as a stimulant for the economy. The level of taxation does indeed affect growth negatively in the long term. Specific taxes may cause adverse effects in particular segments of the economy and an overall high level of taxation has a negative effect on the economy at large. But, those effects are slow moving and forms over time.

It's not like tax cuts haven't been tested. We have basically have had eight years of what the Republicans currently argue for. And, it didn't work to stimulate the economy. Instead, it created an incredible budget deficit.

It's too bad the Republicans still in office have such a short memory or lack of imagination that they cannot come up with something new. It's extraordinary that they are so still hanging on to the policies of a failed President that have driven the economy into the ground together with a number of other issues, including the Republican party.

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