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TAX CUTS AND SPENDING

The 2008 presidential election will once again highlight the differences in the taxing policy between the democratic and republican parties. The presidential election is important to Seminole county because the quality of life of the counties’ citizens depends on the funding of local programs.
The Republican Party has followed the supply side economic policy since Ronald Reagan’s administration where they believe that tax cuts for the top 1% of Americans will stimulate the economy. The theory being that those receiving the tax cuts would reinvest in the United States economy. These tax cuts in conjunction with reduced spending would lead to a balanced budget.
Unfortunately this theory failed miserably. Those American’s who received the tax cuts did not reinvest in the economy as planned and increased spending primarily for the military caused the deficit to increase to over $200 billion dollars. The supply sides republican continue to defend tax cuts for the rich because they believe that the rich pay more taxes. The reality is the rich are paying a higher share of the tax burden because they are earning a higher share of the national income.
The Democratic Party’s policy of tax and spend is not the answer but its’ focus on improving the quality of life for the middle class is preferred. The argument for tax cuts for the rich doesn’t hold water when you compare the period from 1947 to 1967 when the democrats controlled congress. During this period the US economy grew at an average rate of 4% per year. The tax rate during this period of sustained growth was at 91%. Again the democratic policy of tax and spend is not the answer but the focus on improving the quality of life for the middle class will help our country continue to be the envy of the world.
In 2001 President George Bush signed into law tax cuts for the top 1% of Americans. The story line was that the richest Americans would receive...