But the fact that a large number of Democrats are willing to withhold on any reduced rate of tax collection is an incredibly profound change and although they are unwilling to admit it, it is also a big admission to the success of supply-side economics and the benefits of tax cuts.
The argument is that the economy is so bad that we must relieve some of the tax burden on businesses and offer them incentives to hire. Mind you, this is not what Republicans are arguing, it was Democrats are arguing and even proposing. On Thursday President Obama is said to begin rolling out a job creation program which is a mix of tax cuts and spending that amounts to another stimulus package and is proposing such things as tax relief for businesses.
In fact, today, socialist Democrats all across America are supporting lessening taxes as a means to stimulate the economy. Just this past Summer, many Democrats supported the repatriation of corporate taxes on profits made by them outside of the United States at a lower than normal rate. But one of the liberal objections to this was that companies would not use a tax reparation holiday and the additional money they would make on the lower than normal tax rate of such a tax holiday, on creating jobs here in America. So some liberals wanted to pass legislation that would use the additional funds from a tax holiday, to lower unemployment in the U.S.. But according to liberal California Congresswoman Loretta Sanchez, such legislation is wrong. Back in June she reportedly said;
“I think you should be able to spend your money how you want to use your money,”
“The last time in 2004 when we did this, corporations used it and bought back their stock. So what? If I was a stockholder in that company, I did well.”
I never thought I would write this, but Sanchez was right. But Sanchez’s thinking here is consistent with her record which is usually a tax and spend mentality that relies on the government taking the money out of the free market and spending it and redistributing it themselves. And such inconsistent liberal thinking is becoming prevalent during the current economic crisis.
Back in July, the bastion of liberalism known as the Commonwealth of Massachusetts signed off on their own holiday. It was a sales tax holiday that lasted set for just two days in August and it gave shoppers a temporary break from the state’s 6.25 percent sales tax. This amounted to an estimated $20 million tax cut for consumers. After a Massachusetts House vote that passed the bill with 123 votes for it, to a mere 23 votes against it, the state’s liberal House Speaker, Robert DeLeo said in a statement;
“The House has once again voted to stimulate local businesses which keep jobs in Massachusetts.”
He subsequently added;
“With folks across the Commonwealth continuing to struggle through the economic downturn, the sales tax holiday will provide relief to consumers while supporting local merchants.”
Such thinking is correct. It is the same thinking that people like Jack Kemp have devoted their lives to. It is the same thinking that till this very day, liberals ridicule President Ronald Reagan for. Yet today, Democrats are embracing the policy as a means to create jobs and stimulate the economy. And this goes for President Obama.
So what’s the problem?
The problem is that if such supply side, tax relief thinking can be applied to getting our nation out of its current economic crisis, why is it not good enough to keep us from entering economic crisis?
Lower tax rates on businesses, corporations, families, and individuals are either good or bad. Republicans contend that a lower tax burden is good but Democrats are trying to tell us that a lower tax burden is only good when the economy is ailing. But you can’t have it both ways. So which is it? Do today’s socialist Democrats accept the fact that lower taxes allow for a stronger economy or do they hurt the economy?
Today Democrats are willing to admit that lower taxes help are good for America. But tomorrow they will once again begin preparing campaign literature and ads that try to wage class warfare and accuse Republicans of being for only the big business and the wealthy. I have long maintained that the liberal socialist ideology of the Democrat Party is an illogical, hypocrisy based ideology. This just helps prove it.