Back in 2001 and 2003 President George W. Bush pushed his income tax reduction laws through Congress. The theory behind those tax reductions was the government was running a surplus and the economy needed a boost. What was the result? Higher net income for business and the loss of American jobs to China, India, and other nations. The result is that business leaders tell the American people we are no longer a manufacturing society, we are now a service society. Those services translate to lower paying jobs for the middle class. What middle class? Those jobs are the jobs of the poor!
Even Bill Kristol is now questioning the idea of even lower taxes for business.
By Igor Volsky of Think Progress on Aug 11, 2012 at 3:42 pm
Bill Kristol, who had predicted that Mitt Romney would name Paul Ryan as his vice presidential running-mate, expressed some concern Saturday morning that Republicans may have a hard time defending the GOP budget, which disproportionately cuts taxes for the rich.
“It’s the tax cuts for the wealthy, where Republicans have not done a particularly good job of defending it and I think you’ll see Democratic attacks focus on that side of the equation,” he said. The Wall Street Journal’s Stephen Moore agreed, but noted, “who’s better to defend those policies that Paul is, I mean he knows this stuff better than anyone.”
Paul Ryan’s infamous budget — which Romney embraced — replaces “the current tax structure with two brackets — 25 percent and 10 percent — and cut the top rate from 35 percent.” Federal tax collections would fall “by about $4.5 trillion over the next decade” as a result. To avoid increasing the national debt, the budget proposes massive cuts in social programs and “special-interest loopholes and tax shelters that litter the code.”
But 62 percent of the savings would come from programs that benefit the lower- and middle-classes, who would also experience a tax increase. That’s because while Ryan “would extend the Bush tax cuts, which are due to expire at the end of this year, he would not extend President Obama’s tax cuts for those with the lowest incomes, which will expire at the same time.” Households “earning more than $1 million a year, meanwhile, could see a net tax cut of about $300,000 annually.”
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