"Death and taxes." We all know the phrase. Nothing is as inevitable as these two things, but fortunately only one is controlled by government (for the most part). In many ways taxes is the key factor in the strength of an economy, and one of the few ways we, as citizens, contribute to our government.
Overtime though, two opposite views have arisen and polarized many people, as well as our two major political parties. One plan is to decrease tax, with most of these benefits going to the wealthy and large businesses. The other is to decrease taxes on the middle and lower class, while raising taxes on the wealthy.
The idea behind the first plan is that giving money to those at the top will cause more investment into businesses and banks. Banks can then loan more for growing businesses. This growth will then trickle down to those in the middle class, who will then have more money to put back into the economy. This plan goes by the names supply-side economics and the trickle-down theory, and is obviously the main Republican tax plan.
The other plan is to raise taxes on the wealthy who aren't paying their fair share, while reducing taxes on the middle class, the largest class. This will give more money to be put into the economy and businesses, and more money directly to the people. Taxing the rich will also even out tax rates with the middle class which will also boost government income. This is the main Democratic tax plan.
Only one of these plans is right, and only one has ever worked: the Democrat's plan. The Republican plan became famous during the Reagan years, as a part of Reagonomics. When Reagan put the plan into action in 1981 it caused mass inflation, stalled business, and an unemployment rate of 11%. This, coupled with massive military spending, led to the worst recession since the Great Depression. Yeah Reagan got us out, and back to a strong economy, but only by raising taxes 11 times in his last 6 years. You know who else used the trickle-down theory? George H.W. Bush, who caused the economy to once again slip back. Then came his son George Bush, and we all know how that turned out.
The Trickle-down theory does not even deserve to be called a theory. It has been proven false numerous times. Much like communism, it only works on paper. Yet the Republicans continue to use it. Is it because they have no other plan to turn to, or just because they're too greedy, or do they seriously believe in this failed plan? Republican voters continue to buy into it to, and believe these taxes decreases are directly for them, when they really aren't.
Since when does decreasing income during economic troubles make sense. When a family is struggling to make ends meet they don't want to make less. Raising taxes, specifically on the wealthy, creates a guaranteed federal income. Lowering taxes for middle and lower class creates money to be put into the economy, and to create jobs. We are the job creators, not businesses. Businesses don't make jobs just to make jobs. That would be stupid. They make jobs based on need, which is controlled by supply and demand. That thing we all learned about in 3rd grade social studies. More money for consumers creates more demand for products and services, which creates need for jobs.
An example of this success can be found with Clinton. 23 million jobs, a powerful stock market, booming business, and a great economy. International economists also support this plan as the only feasible way to grow an economy.
A common misconception about the Democrats is that we want to raise taxes on everybody. We aren't called the party of the middle class for no reason. Our goal is to decrease taxes on those that make less than $250k, while raising taxes on othe wealthy, like businessmen who who pay an average of 10-15% on taxes, like Mitt Romney (13%). These men move businesses, jobs, and their money outside the country to tax havens. Meanwhile those in the middle class are paying their fair share, about 25-33%. Barack Obama himself pays 26%, twice Romney, who makes millions of dollars a month. 15% compared to 33% . No one in their right mind should think this to be fair.
We all want the economy to get better, yet we don't want to do our part. Besides voting, paying taxes is the only way. This message is aimed at the rich in particular. I do not understand how any middle or lower class person or family could support the Republicans strictly for their economic policies. The Democrats have the only proven plan on taxes. It's time we used it to make this country strong again.
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