Originally Posted by Kenny_C.002
That's the theory. The problem is that under your circumstances, cutting the taxes mean absolutely nothing to 99% of Americans, because the amount of tax you cut is so minuscule that you might as well have not. The main profiteers of this would be the top 1%, where a small cut like a 1% tax cut would actually have a big impact (instead of a couple hundred bucks for an average middle income family, they would gain an extra hundreds of thousands of dollars). That's the big flaw of tax cuts in it that you have a very big hit in your tax revenue for very little gain in spending power, since 99% of the population have barely any benefit.
Secondarily to that, you have to cut spending. Obviously cutting spending in a system already under strain and with very little budging on the politicians' own cutting of budgets (hypocritical, but is common practice) means that the cutting has to be on public services. Cutting public services when the public services themselves are under strain is suicidal, as exemplified by Ontario's huge budgeting blunder in the late 90's and early 2000's (where education AND hospital budget cuts led to both systems pretty much imploding on itself).
Significant budget cuts just aren't going to happen, imo. Democrats won't budge on social security and health care. Republicans won't budge on anything else. So while our spending remains stagnantly unsustainable at best, any tax cuts will out the government trillions of dollars that can't be gotten any other way.
Also, in addition to what Kenny said, approximately 47% of Americans don't pay any income taxes at all, which is what is mostly considered to be able to be cut (however, they pay plenty of other taxes). And tax cuts for the wealthy is just a ridiculous idea, the wealthy in America have seen the greatest fall in tax rates out of any income group over the last three decades already, while their income has risen so greatly that they are actually paying a greater total amount of taxes than before, despite that amount being a smaller percentage of their income.