A Simple Spreadsheet

A simple spreadsheet. Or any basic home budget sheet is all that is needed.

Now that we have a Republican “landslide” that has taken over the majority of the House of Representatives, the tax cutters and spending cutters are in charge. The “American People” have spoken.

Except of course for the Senate and the Presidency. Except for several governorships and countless local and state election results. The “seismic shift” is more like a hiccup.

But, the “con budget” math is back in charge we are told.

So, take out the budget sheet and put income (revenue) at the head of one column, outgo or expenditures (spending) at the head of the other column, and balance to the right and at the bottom of the outside right column.

Now in the expenditures (spending) column put 4 trillion dollars for tax cuts, 1.5 trillion for wars in Afghanistan and Iraq, 30 billion for prescription program, 600 billion for stimulus plan; etc. In the income column put …way less. Hit return and watch all the negative numbers. Now, for government to still function, pay for the army and navy for example,the government has to borrow which stifles the economy, sucks up credit and depresses wages and employment.

You get my drift I hope. Regardless of what any politicians say, tax cuts are not income…they are essentially spending. Another way of putting it, is they are minus numbers in the income column, if you feel better in the right column. No pun intended.

Ok, let’s keep it even simpler. You have a job that pays you $8000 a month. Your boss comes into your office and tells you that he has to cut your salary by $2000 a month. Does this increase your income? Now think real hard here, supply economics is at work here; does your income (revenue) go up its source (your salary) is cut? Ok, if your revenue is cut, you buy less, you cut back, and less money is in the economy. Government is a big spender and keeps local, state and national economies going everywhere. Cut it and you cut the economy. So where does the cut go? What about all those “savings” if taxes are cut.

Now comes the clincer of this madness. Let’s say Richie Rich (remember him), gets a tax cut of 5% . Does Richie notice it? Probably not. Does Richie go right out and spend it. He makes millions remember? Of course not. What does he do with it. Probably nothing.

Now let’s take Clark Kent (remember him). Clark makes a modest salary as a reporter for you know who. Now give Clark a $30 a month tax cut. Remember Clark has “other duties”. Will Clark notice the extra $30 a month? Probably not. Will he run right out and spend it. No, because he only gets it with his income tax return. How many of us run right out and immediately spend any surplus income tax return when we are fighting to make our house payment and make ends meet on unemployment.

So, while we are being constantly reminded that tax cuts stimulate the economy they do not. They just don’t. The only ones that ever did, during the Reagan Revolution were cuts that reduced what had been decades long rates, and even then there is litte evidence they stimuated anything. The economy moved up some, then plunged into yet another recession.

I listened and winced as a democrat Senator commented that the “middle class tax cuts’ had to be maintained because of their “stimulative” value. The day before, an analysis of the Republican landslide, quoted a study that showed a majority of the middle class did not think they had received any tax cut from President Obama’s policies. That’s right, a majority did not know they had received the tax cut Obama promised in the 2008 election. So where is the stimulative property when people don’t even KNOW they got a tax cut. How can you spend money you don’t even know you have?

Malarky. That what it is, malarky. Tax cuts only serve to make the rich, richer. And, they are so thinly spread among the rest of us that we don’t notice. The only thing they do is make the red ink (deficit) of the federal government larger and push for more cuts to government programs, like Social Security, that the far right has always hated. The con is starve government, cut programs and make the rich fat cats richer.

Small businesses will not close if the Bush tax cuts are ended. In fact, if the federal government (and states that stop this tax cut madness) spend more, hire more workers, start more infrastructure work; etc., THEN the economy will be stimulated and grow and small businesses will begin to prosper.

Small businesses are starving because people are broke and out of work. How will continuing tax cuts to them, if they make more that $250,000 a year possibly increase their customer base? Think about it.

The lack of customers is why small businesses are not hiring, not what their tax bill is. Think about it. A restaurant in Detroit sees their lunch count drop by half. That cuts their income. What does a tax cut on the owner’s income have to do with how many waitresses he employs? That’s right, when the lunch count goes down, because people are broke, he doesn’t keep people, he cuts them, and pockets his tax cut. How many businesses do you know that keep employees if there is no work for them to do? None. Therefore, tax cuts for the small business owner in no way will increase their customer base. That is why the Bush Tax Cuts, have been in effect while millions of jobs have been cut. Tax cuts have nothing to do with job growth. Customers cause job growth. And, when you have removed the middle class an an economic base, you have no customers.!

Regardless of this simple math and econ 1, the con continues; unfortunately, by both Republicans and Democrats. Cutting government spending, especially in a recession, is much, much worse than raising taxes (especially on the rich who have been largely untouched by the recession). What has happened is the distribution of wealth has been concentrated more and more in the top 1%, while the rest of us are left with the scraps. This has damaged the economy badly by destroying the middle class consumer. To continue that same mistake will kill any chance of economic recovery.

If the Republican wave is allowed to do its work, this country will be in a full blown depression within a year. Of course that won’t happen, because the Senate and the President won’t let that happen. Then, in 2012, the Republicans will run on the platform that the President and Senate refused to cut spending and ruined the economy, while in actuality their damn tax cuts are ruining the economy. That’s right, tax cuts damage the economy more than they help it. If you doubt that, come to California, where we have cut taxes, fees; etc, reducing revenue to state and local government, and building prisons we can’t pay for and a k-16 educational system our children can’t afford.

Tax cuts damage the economy. Obama, if he loves his country, should tell the American People the truth and allow ALL the tax cuts, including the middle class tax cuts to expire. It may make him a one term President, but it will save the economy.

This all happened in 1936, plunging the nation back into the depression, turning America from the world, and opening the door for Hitler. Cutting taxes and cutting spending is economic suicide.

People, the reason the cons continue this sham is that is all they have. They have no real solutions to anything, except paying back the corporate billionaires who bankrolled their elections with tax cuts that kill your jobs and your future. The rich get richer and you get nothing.

And still the middle class (except in the blue states) continue to lap the Fox News B.S. charade.

Stoopid!