McCain and Tax Cutting
John McCain has a bright idea. He wants to cut taxes for business and for consumers. First, he wants to cut business corporate tax from 35% to 25%. As a business owner, it is very clear that I can hire more people if my tax burden is lower. For the non business owner, this may not make sense, but I truly would increase my hiring with a lower tax burden. So, what is the benefit of me hiring more people? well, it means that more taxes will go into the treasury of the United States. Every time it is tried, the lower the taxes, the more money is collected by the government in income taxes. More recently, John Kennedy, Ronald Reagan, and George Bush (43) have cut taxes with increased tax collection.
McCain also wants to cut taxes on gasoline. I see how this could be a problem as this money is earmarked for highway projects, but I think in the end we all win with lower taxes. The money is available, it is instead a matter of how we spend our tax dollars.
USA Todays opinion page today can only focus on how much tax revenue the country would loose if taxes were to be cut. These are the same ideas that will make this country not be competitive with the world. Our corporate tax rate is too high, and we must compete with the world. Lowering taxes unleashes the minds of American business and take away the burdens of doing business. Our mess during the Jimmy Carter years was only resolved by supply side economics. It works, and we all need to revisit why Ronald Reagan was the man for his day. Is John McCain that man for us now? I don’t know, but I do know that his rivals are tax and spend politicians.
April 18th, 2008 at 12:36 pm
I’m going to be a little torn this election. The last two have been much more clear cut for me than what this one is shaping up to be. There are things that I like about McCain, but then there are a few things that scare me enough to push me away from him. If the Democrats can ever stop acting like 3 year olds and pick a candidate the debate should get interesting moving toward the election.
April 21st, 2008 at 1:57 pm
I have a question with regard to taxes for you. What do Republicans think about a flat tax?
April 24th, 2008 at 9:24 pm
Conservatives in general are very supportive of a flat tax. Steve Forbes was very proactive on this issue several years ago, suggesting a flat rate of around 17% as I recall. Rebublicans, however, seem to be a little more divided on the issue regarding the ones I talk to. As a conservative, I would be more than happy with a flat tax, as it is fair across the board. The more money one makes, the more they pay. Its pretty simple.
April 25th, 2008 at 1:18 pm
I, too am a proponent of the flat tax, but wasn’t sure how the other side felt. I thought I heard something this campaign season from someone who was out there proposing a flat tax at around 10%. I can’t remember who it was or if that was the exact number, but that person is out of the race now. I’d like to see more people talking about that!
April 25th, 2008 at 1:21 pm
My other comment on this subject is…. I don’t really understand how one can lower taxes for both corporations and consumers, and continue to fund 2 and possibly more wars. Some programs which are government funded would definitely have to be cut. I would like to hear more about what those might be before I get too excited about tax cuts.
April 25th, 2008 at 5:28 pm
All great comments on this subject. One of the foundations of the conservative movement is that lowering taxes will result in increased revenue for the government. As in the original post, several Presidents have understood and used the power of this theory. Supply Side economics works proven by past history. Thus, yes, two wars can be paid for, all the government programs we have, and we can lower taxes. What we can’t do is keep spending on give away programs.
April 28th, 2008 at 10:26 am
Isn’t it funny, but I can’t agree with you more on this topic. Although I’m a very strong liberal believing that we should help all who can’t help themselves…. I definitely believe in limits. I am very adamant about the fact that those on welfare should be doing everything they can to get off it. I also believe our government, instead of just handing out checks every month should be doing something short of forcing these people into educational paths that would lead to a technical job. Or for those that are capable of more, to college even. I think that in the long run, these types of programs would be cheaper than what we’re doing now.
I’m still a little shaky on the whole lowering taxes will increase revenue for the government. I understand the concept, I just have doubts when so many fundamental government programs are bleeding money including Medicare. I know all of us should be more responsible and save money for our care later in life, I just know that there are those who won’t and they will be a bigger drain on the government’s finances when they reach that age than if we still had a Medicare program.