Reply #27: OK, but what I see is same old same old

[MindMatter]

It is a GOP knee-jerk action. No matter what the question is, their answer is to cut taxes. Screw that. If that is their only answer, then we should just leave them out.

We need to be clear that tax cuts can be warranted in some cases, but they are the worst possible answer as a stimulus for the economy.

1) They don't necessarily put money into the economy. If people use their tax cuts to pay off bills, the money goes into the banks, and we are right back to the lending problem we started with.

2) If people use it to buy products that they would not have purchased otherwise, that is stimulative, but only a fraction of that money goes into the AMERICAN economy. If people take that tax relief and spend it at Wal-Mart, then we are stimulating CHINA's economy, not ours.

In the end, only about 10 cents out of every dollar of tax relief actually makes into in the American economy as new stimulus.

If you want stimulus, then it needs to be through government spending where we can make sure that the stimulus happens, and 100% of the money goes into stimulating OUR economy.

I don't know why Dems have such a hard time explaining this.