Quote:
Originally Posted by Rajoo
Its OK, I get it. You would rather regurgitate than actually discuss.
You still have not answered the primary question on supply side, how does one justify tax cuts with money that's needs to be borrowed. Businesses like mine does this all the time, we often borrow money for capital expenditure but these loans need to be guaranteed with underlying assets in private companies or financed by investors in public companies.
And where does a government get the money for the tax cuts or for that matter money for interest payments. Answer, government borrow even more for the debt service and this cost is borne by all the tax payers while the rich and the wealthy enjoy tax cuts from this government ruse.
Supply side is Trickle Down and it never trickles. Money gets sucked up and up like those tubes in drive by bank counters.
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Not at all. I thought I had addressed these questions, but I'll give it another try.
how does one justify tax cuts with money that's needs to be borrowed. Businesses like mine does this all the time, we often borrow money for capital expenditure but these loans need to be guaranteed with underlying assets in private companies or financed by investors in public companies.
First, and once again, supply side theory has NOTHING to do with spending decisions. It's a theory about stimulating economic activity by making it less expensive/more attractive to convert capital into goods and services. Financing the operation of government is a separate and political process.
That said, the difference between your business and the government is that your business can't print its own money. The government backs its loans with an increasingly imaginary concept called "the full faith and credit of the United States Government.". This makes the government accountable to itself when financing spending with debt.
It's also, by the way, the same way the government justifies spending money it doesn't have: whether that spending is in the face of under-funding or under-spending the budget. We can argue about whether the government is underfunded or overspent, but when the Treasury sets new records every year on tax revenue collected, it's pretty hard to say the budget is underfunded.
And where does a government get the money for the tax cuts or for that matter money for interest payments. Answer, government borrow even more for the debt service and this cost is borne by all the tax payers while the rich and the wealthy enjoy tax cuts from this government ruse.
Except that's not what happens. Go back and look at the numbers. Marginal rates went down, and the amount of taxes paid increased.