Vice President Biden's task force, Obama's SECOND task force charged with the responsibility to get this economy started generating jobs again, is running into trouble today. Cantor refused to continue in the discussions if Democrats continue to insist on tax increases. Cantor's (and other Republicans') claims that tax CUTS help the economy more than tax increases are not just anecdotal partisan claims lacking proof.
Progressives use tax increases to 'redistribute wealth'. That's a fact that even President Obama acknowledged. Tax increases used to take money from 'The (Evil) Rich' and simply give it to the less rich accomplishes redistribution of wealth for sure but to also claim it results in a net increase in jobs outside government has no basis in actual facts while there is ample evidence that tax decreases DO help.
The facts(!) prove that Bush's tax cuts for the rich resulted immediately in a sustained decrease in unemployment and a sustained increase in federal revenue. Just over one month after Bush's biggest tax cut for the rich (80% of it went into effect May 28, 2003) unemployment topped out and began a sustained decrease to 4.4% (ie, technically "Full Employmnet"). A couple of months later the increase in employment began increasing federal reveues steadily to a record $2.5 Trillion, 25% higher than Clinton achieved for the same unemployment rate. It's irrational to claim that Bush's tax cuts hurt either unemployment or revenue when the actual data says the opposite. I know The Left wants to believe the opposite is true and that it makes for a politically useful partisan talking point but it's a claim that is factually incorrect.
As a matter of actual fact, both unemployment and revenue turned around immediately after Bush's biggest tax cuts for 'the rich'. To claim they did otherwise is to deny actual facts and claim something that is factually a lie.
Yes, the tax decrease reduced revenue by $1 Trillion but ONLY if you IGNORE some facts ... ie, that those tax cuts resulted in increased employment to such an extent that, overall, revenues went up, not down. The number of people put back to work and now paying taxes more than compensated for the per capita decrease in taxes paid. The math is simple but one has to use ALL the data to know the truth.
Our economic troubles are far too great to allow partisan talking points rather than truth determine what steps we take to fix this mess. The trouble we're in has everything to do with out of control spending, not inadequate revenue. After all, Bush got revenues up to a record $2.5 Trillion before the housing collapse caused this recession. The problem he helped create is in spending wayyyyyyy too much. Increasing taxes and, therefore, taking money out of the productive sector of our economy simply makes no sense when we need the productive sector to create more jobs. We cannot take resources away from them and expect them to increase the number of jobs. That's just common sense isn't it? Make them less profitable AND expect them to hire MORE people? Are you kidding me? How is that in any way logical?
By the way, do you remember that this is Obama's SECOND task force that he created with the same responsibility? Do you remember he completely ignored the recommendations from the first one? Do you understand that this current task force is coming up with the same kind of recommendations? What's he going to do? Keep creating task forces and ignore their conclusions until they come up with conclusions that match his progressive objectives ... regardless whether they actually help the economy?
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