Saturday, July 30, 2005

Budgets and Taxes

this is an audio post - click to play

“The deficit is going to be a symbol of the GOP’s credibility problem, and the budget is going to be the document we use,” said U.S. Representative Rahm Emanuel, a Democrat from Illinois.

This quote is quite right. The GOP will be remembered for what it did with the deficit these last few years.

Last year, the federal budget deficit for 2004 was $412 billion. That is a sum that is nearly unimaginable to all of us. That number was also dangerously high. The current projected budget deficit for 2005 (I do not even want to hear any flak about a projected deficit from you liberals, because a projected budget is the only way you people could ever claim there WOULD have been a surplus) is $333 billion. That is, if I am not mistaken, a drop in the value of the deficit.

Now, as we all know, this is bad news, for the deficit is all Bush’s fault. The deficit is one of the main reasons why Bush should resign (that and the fact that he was born). Senator John Kerry (who served in Vietnam) and white male Michael Moore told us that the tax cuts Bush gave “the rich” were going to not only starve the poor, but they were also going to make our country’s deficit run wild like a Howard Dean follower.

Unfortunately, the liberals do not seem to understand how economics works. You see, Bush’s tax cuts are very responsible for the smaller deficit. When Bush gave the tax cuts, there was more money for every American to spend. You see, when Americans have more money to spend, they spend it.

For example, if Joe Blow gets $500 dollars back, he is going to go down to the Wendy’s in Evergreen and buy hamburgers for the next few weeks. So, before Bush’s tax cuts, Planned Parenthood would have gotten that $500 to kill people, but after the tax cuts, Wendy’s got that money. What did Wendy’s do with that money? The combined added revenue from the tax cuts caused Wendy’s to open new restaurants. That meant Wendy’s had to HIRE more workers. When that happened, those new workers contributed more taxes to the government. Thus, Wendy’s caused more tax revenue to flow toward the deficit, therefore causing it to shrink.

I went through that very simple example to show you liberals (conservatives already knew this you see) how very smart it really was to give the tax cuts.

Of course, the liberals wanted us (they still do) to raise taxes to cut the deficit. What would that have done?

Imagine Wendy’s taxes have been raised; therefore they have to lay off a few workers at each store. Those workers are now on unemployment, and thus are draining off the system. What happened? Wendy’s profits are down, many employees are out of work, and the deficit is shrinking. As opposed to Wendy’s profits rising, brand new workers in the workforce, and a shrinking deficit. Which is better? I will let you decide that.

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