mercury14
Pragmatic Metaphysician
- Joined
- Jul 8, 2009
- Posts
- 22,158
Tax policy varies tremendously based on what it's for and who gets it. The temporary program called Cash for Clunkers, for example, did nothing to stimulate the economy. Temporary reductions in social security premium payments do nothing either. Marginal tax rate reductions do help...or reductions on cap gains taxes...very positive too. It makes a big difference.
This isn't true though. The CBO and every other non-partisan analytical agency you've ever seen says that marginal rate reductions are a very mediocre way to stimulate the economy on a per-dollar basis. Payroll tax breaks are pretty average as well.
The best bang for our taxpayer buck is unemployment benefits and bonuses to social security payments. Those things are high-octane stimuli because they're spent very quickly and thoroughly. Marginal tax rate cuts on the other hand trickle in slowly and often end up going into savings (not very helpful) or investment (somewhat helpful).
The reason you don't agree with what I just said is because you believe Republican propaganda rather than non-partisan objective economic analysis.
Our deficits were coming down while Bush was President, even with both wars in full effort. The Obama deficits were about 4 to 5 times as high ($300 vs. 1,500) as Bush's while the wars were ramping down. Strange isn't it? The democrats are spending us into penury.
2003 Federal Spending under Bush + Repubs: $2.2 Trillion.
- Pensions .5T (including VA benefits)
- Health Care: $.5T (primarily Medicare, also Medicaid, S-CHIP, WIC, public health, hospitals)
- Education: .1T
- Defense: .5T
- Welfare: .2T
2006 Federal Spending under Bush + Repubs: $2.7 Trillion (Hey look, Republicans added half a trillion in spending in just 3 years!!!)
- Pensions: .6T
- Health Care: .6T
- Education .1T
- Defense: .6T
- Welfare: .3T
2011 Federal Spending under Obama + mixed legislature: $3.6 Trillion
- Pensions .8T
- Health Care: .8T
- Edication: .1T
- Defense: .9T
- Welfare: .5T
What you see here if you're not a partisan fuckup, is that pension costs, health care, and defense have driven spending increases.
- .4T of Defense spending has been the largest reason spending has increased and has strong Republican support.
- .3T increased in pensions. There are fewer federal employees, however when you count the swelling of the military and the exploding cost of VA care, there is a net increase in spending. This would be the same situation of a Republican was in office.
- .3T Health Care increase. Medicare rolls are increasing exponentially with the aging population. This would be the same situation if a Republican was in office.
- .3T in welfare increases (or just .2T from the last Republican budget pre-recession). The number of people eligible for benefits exploded during the recession. This also includes unemployment benefits. Note that welfare costs are already dropping as the recovery happens and that the census bureau puts this figure back at .4T by 2016.
You seem to want to believe that Democrats passed some new spending program... But the facts just don't support you.
http://www.usgovernmentspending.com/fed_spending_2006USrn
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