re: #177 avanti

I’m watching the White House press briefting and they are claiming it’s only a 7/100’s of one percent of the money in the bill that’s getting all the negative comments. The Dems should pull the 50 million for the arts, the money for STD and the like and put more in infrastructure and direct job creation and get that crap off the table. There are bigger issues the GOP will have to address to get a bill they’ll support then those.
BTW, they are finally taking tough questions from Fox at every conference.

Here is the issue.

“Tax cuts” are considered ideological by Obama.

They aren’t. Here is why.

Democrats are of the opinion that a dollar is a dollar, be it from tax cuts or spending. For the sake of argument, let’s accept that. The Dems then say that such a dollar can stimulate the economy from the “bottom” just as much as from the “top”. Again, for the sake of argument let’s accept that (which I don’t, but that is another post).

The difference is borrowing. When you spend the dollar you don’t have you borrow it (or print it, which -by definition - just makes everyone poorer). When you borrow it, you take a scarce resource - credit - and make it MORE SCARCE. A tax cut, on the other hand, does not directly compete for credit. The funding comes from those who are most productive in the economy. Those businesses, for example, that are money losers don’t see a tax cut - they pay no tax. Those that do make money do see a cut. You want to stimulate those who are succeeding in the economy because they are the most likely to create long term, sustainable jobs. And they end up financing the stimulus, which makes more credit available - not less.

That is what is fundamentally at issue.

That is math - not ideology.