Did the Rich Cause the Deficit?

[Bill USA]

http://www.ourfuture.org/blog-entry/2010114618/did-rich-cause-deficit

Washington is inundated with deficit commissions. The country has piled up a huge debt because we cut taxes for the wealthy and borrowed to make up the difference. But everyone says we can't fix the problem by raising taxes on the rich in a recession because taxes "take money out of the economy." Is there a factual basis for this idea, or is it just one more corporate/conservative-generated piece of "conventional wisdom" bamboozlement?

A brief budget history since the 80's: We cut taxes, increased military spending and cut investment in our infrastructure, and the result was huge budget deficits and slower economic growth. Then in the 90's we raised taxes on the rich and increased investment in the country and we had big budget surpluses and the economy was growing at a good clip. Then in the 00's we again cut taxes on the rich and raised military spending and cut back on investing in the country, and went back to huge deficits ("incredibly positive news'') and feeble economic growth culminating in the financial crash.

So now, to address the Reagan/Bush deficits the DC elites -- the "serious people" -- are proposing ... wait for it ... not raising taxes on the rich, not cutting military spending and not investing in the country. Instead they want to cut back more on the safety net and on services for the middle class. There really is a brain disease loose in DC.

The justification for DC's refusal to fix a problem caused by tax cuts on the rich by restoring taxes on the rich is that you can't raise taxes on the rich during a recession. The oft-repeated idea that taxes "take money out of the economy" has become so ingrained that there is no discussion at all, it is just accepted as a given. It is "conventional wisdom." It certainly is a convenient conventional wisdom for the wealthy, but it is a fact?
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[PDJane]

1. The exact opposite is true;

taxes put money into the economy, because it takes money that would simply make more money in investments from the rich, and puts it back into the general economy. That is another GOP lie, and it's taken hold in a way that is simply scary.

That people believe the propaganda enough to vote against their own interests is amazing.

[robinlynne]

2. Everyone doesn't say that. Republicans say that. they are what 27% of Americans?

[Hydra]

3. It isn't just the tax cuts

They're pushing for this multi-trillion dollar military gravy train, offshoring, tax shelters and various other things that either take money out of the system or make sure nothing goes in on their side.

It's a classic case of the parasite sucking too much out of the host. The thing I've always questioned is why do we have a system that promotes and enshrines parasites?

I mean really. I've heard capitalism is the "best we can do"...when capitalism only works when it sucks off of someone else who has a stable system. The best we can do is organized theft? Really?

[pscot]

4. Cu Cu C'Chu

Any way you look at it, we lose.