Varsity-Packet-Final

Bush who cut them during his first year in office 10 p

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Unformatted text preview: tion," as the Journal puts it. Don't believe it. The real reason businesses aren't creating more jobs is American consumers -- whose purchases constitute 70 percent of U.S. economic activity -- don't have the money to buy more, and they can no longer borrow as before. Businesses won't invest and hire without consumers. Even as executive pay keeps rising, the median wage keeps dropping -- largely because businesses keep whacking payrolls. The only people who'd have to pay substantially more taxes under Obama's proposal are those earning far in excess of $250,000 -- and they aren't small businesses. They're the fattest of corpulent felines. Their spending will not be affected if their official tax rate rises from the Bush 35 percent to the Bill Clinton 39.6 percent. In fact, most of these people's income is unearned -- capital gains and dividends that are now taxed at only 15 percent. If the Bush tax cuts expire on schedule, the capital gains rate would return to the same 20 percent it was under Bill Clinton (the Affordable Care Act would add a 3.8 percent surcharge). Funn y, I don't remember the economy suffering under Bill Clinton's taxes. I was in Clinton's cabinet, so perhaps my memory is self-serving. But I seem to recall that the economy generated 22 million net new jobs during those years, unemployment fell dramatically, almost everyone's income grew, poverty dropped, and the economy soared. In fact, it was the strongest and best economy we've had in anyone's memory. In sum: Don't fall for these big lies -- Obama wants to extend the Bush tax cut "only for some people," small businesses will be badly hit, businesses won't hire because of uncertainty this proposal would create, or the Clinton -era tax levels crippled the economy, A ton of corporate and billionaire money is behind these lies and others like them, as well as formidable mouthpieces of the regressive right such as Rupert Murdoch's Wall Street Journal editorial page. 8|Page Taxes Bad DA Affirmative BDL Answers to: Tax Increases Hurts the Economy [____] [____] Allowing a tax increase won’t hurt the economy CBS News, 2012 (“Will Tax Hikes Hurt Economic Growth,” February 2, http://www.cbsnews.com/8301-505123_16257369933/will-tax-hikes-hurt-economic-growth/ As this issue heats up, you will hear again and again that tax increases, particularly on the wealthy, will depress economic growth. However, as I detailed in a previous article, there's very little evidence that tax changes of the magnitudes and types being considered will ha ve a significant impact on economic activity: Economic theory helps us to determine which types of taxes are best in terms of efficiency, but the equity of taxes -- who pays them and whether it's fair -- also matters. Questions of equity must be resolved in the political arena, economics cannot help here, and equity is one of the factors that determines whether a tax is feasible. If allowing the Bush tax cuts to expire for the wealthy is the only acceptably equitable wa...
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