Scott Allan's World

Nancy Pelosi on Fox News Sunday declared that she wants to immediately revoke the Bush Tax Cuts instead of waiting until 2010 when they expire as Obama has suggested. She says, “It’s my view that (tax cuts for the wealthy) are big contributors to the national debt.”

But spending trillions of dollars we don’t have apparently is ok, right? Both of course contribute to the debt and deficit short term, but which one is more effective in shortening a recession and growing the economy? Any economist will tell you that targeted tax cuts are much more effective than handing out money like candy.

FOR EVERY $1.00 OF GOVERNMENT SPENDING, GDP EXPANDS BY $1.40, FOR EVERY $1.00 OF TAX CUTS, GDP RISES BY $3.00.

Why is this? It is because government is incredibly wasteful and inefficient. They spend money on projects that redistribute wealth and do not create permanent jobs and permanent revenues. Roads and bridges are certainly important but unless you put tolls on them, they don’t generate any revenue. Increasing taxes on individuals and companies logically will reduce jobs that can be created by the private sector and will reduce consumer spending. I challenge anyone to explain how raising taxes can have any other effect.

Companies and individuals receiving tax cuts, will most certainly invest their savings more wisely and efficiently creating permanent jobs and income including increases in government revenue. Free markets always work better than government regulation. The problem we have now was not caused by greed in the business world as liberals would like you to believe, it was caused by an artificial market created by the government compelling financial institutions to make bad loans to unqualified individuals.

So why would Democrats insist on spending over tax cuts? It’s because they are trying to ensure they remain in power with pork barrel spending and by creating class warfare and classes of victims that are dependent upon government for everything. They truly believe that people are not smart enough to make good decisions and must be taken care of by the “elite”. This is the definition of socialism.

BARACK OBAMA BELIEVES THAT GOVERNMENT CAN SOLVE ALL PROBLEMS WHEREAS RONALD REAGAN BELIEVED THAT GOVERNMENT IS THE CAUSE OF ALL PROBLEMS. It doesn’t take much common sense and understanding of history to realize who is right.