Diana, the problem is that politicians, in order to stay popular and stay in office, always push the bad news into the future and suck the good news into the present. Tax cuts are are the payday loan on economics - you think you have more money than you really do. Then you spend it. Then the government raises taxes and wants it all back again to pay for the money they had to borrow to be able to give you a tax cut in the first place.
Most people don't realize, but the amount of the US government spends on debt service (interest payments) is similar to the amounts spent for the entire military - and is about 2/3 of the tax cut written out today.
In the long run, the bigger the debt, the less the government has to spend in the future without creating more debt.
Unless government spending drops (and that includes cutting down the number of people with government jobs, the size of government overall, and the big dollar entitlements to all those wonderful pork barrel projects), tax cuts are just a mirage, fooling you into thinking things are going better... the you get on the rollercoaster again for another ride...
Alex
__________________
Let's go to the edge of disaster Push the pedal and go a little faster Let's slam into a wall at ramming speed Let's go to the edge of a mountain Jump off and lets start countin' Hit the ground and tell me if it bleeds
|