The Failed Tax Cut Policy

We have lived with the Bush tax cut now for over a decade and it is clear it isn’t working.  President Obama has continued the tax cuts and the unemployment numbers have worsened. 

During the Bush tax cut years we put the Iraq and Afghanistan Wars on our credit card, we passed a costly Prescription Drug Plan that was not paid for, we expanded government with the Department of Homeland Security all without increasing tax revenue.  All of this culminated with the Great Recession in which tax revenues dwindled and government expenditures for a much needed stimulus program and unemployment benefits drained the system even more.  Our government lost even more revenue with the housing crisis which continues to be a drag on our economy.

The Tea Party has some people convinced that we need to cut taxes and government even more which will exacerbate the problem further.  Did they ever consider that our government will not be able to function without added revenue?  Tax cuts get eaten up with higher prices at the gas pump and paying off credit card debt.  Obviously, tax cut don’t create jobs and actually hurt the economy by putting more middle class public sector workers out of a job.   The private sector has not come to the rescue outsourcing jobs to other countries.

We need to increase tax revenues by having the wealthy Americans along with corporate America pay their fair share.  The extra revenue must be used to create jobs so that consumers will start spending again, buying houses, and getting off the unemployment rolls.  This will increase corporate profits and the rich get richer.   Wake up America!