Tax Cut Thoughts

Tax Cut Thoughts

With all the criticism the Dems are throwing at the tax cut passed today, I thought we might want to look at some points relating to the tax cut and the criticism.

1. A large part of the criticism seems to hinge on the idea of the budget deficit and the naitonal debt. Well, as an old teacher of mine once said, "The national debt is a non-issue. As long as the country can still borrow money, it is irrelevant." So far, I haven't seen anybody coming up and demanding the US settle up.
2. How come we never hear any of this talk about the deficit or the debt when a new spending measure is up for a vote? All we hear is how much such-and-such group will benefit. We never hear about how this massive new gov't program will increase the deficit and thereby the debt. Ok, then. We can play by those rules and talk about how the tax cut will benefit all taxpayers.
3. If the debt is such a huge burdon, then we should pay it off, right? And we should pay off the highest interest debt first, right? Ok, then how about approaching it this way: the tax cut will allow more poeple to keep more of their money, they will be able to use that money to pay off their debt. This debt is (usually) at a much higher interest rate (10-20% +) than the average interst on the national debt (4-5%). So paying off this high interest consumer debt will allow more people to have more liquid income and they can then save, invest, start a new business, spend, what have you with that money. This would be good for the economy.
4. We have been hearing about how the national debt will drown us all if we don't pay it off. We have been hearing this for more than 50 years. It hasn't happened yet, yet it always seems to be an emergency whenever it is brought up. Ok, Chicken Little, we'll keep an eye out for the debt-sky to fall.