Message from @Neco2040
Discord ID: 543171648132612106
But glass stegal had nothing to do with the crash
nor was glass steagal fully deregulated
it was deregulated 1/4th
But thats a different topic and I'll debate that later
Why do tax cuts cause recessions? or the business cycle
I don't know how much tax cuts contribute to recessions, but my main issue with tax cuts for the wealthy is that it's harder to balance the budget and pay for programs to help Americans
But then why do you think they cause recessions?
(fun fact everytime a tax cut has happened, tax revenue has risen)
which completely goes against that thought
Not to mention, most tax cuts are for the general population ( which includes the wealthy)
I would contribute most of the blame to deregulation not tax cuts. But tax cuts do play a role as-well. For example, corporations are using their tax cuts for stock buy-backs
which artificially inflates the market
But that still doesn't explain how that causes a recession?
Stock buybacks don't do anything such
And 'fun fact' isn't true
but what do they "inflate"
Neco I can list every tax cut, and it's raised tax revenues
Coolidge tax cuts, Harding, Reagan, JFK, Bush, Trump
These are one of few
THe deficit literally went up
Deficit due to the spending increasing
How do stock buybacks inflate the stock market?
@Neco2040 But thats not the main point actually, my point is these cycles have happened even when supply side policies haven't been in action
So it cannot be supply side policies at place
The deficit goes up every time we have cut taxes, this really isn't debatable
Nope
Coolidge cut the debt by a 1/3rd
and he cut taxes big time
It inflates the market because they are buying stock...
Buying stock does not "inflate" the market
Tax cuts causing a recession is completely irrational, giving more money to the people is much better than the central planning of the government. The economy is the people, the only people who know the demands of the people are, the people.
I think it's better if we talk about one thing at a time
So tax cuts causing recessions is irrational.
Consumers do not cause recessions.
Reagan exploded the deficit after cutting taxes, then Clinton balanced the budget, then Bush cut taxes and the deficit went up again, then Obama cut the deficit, and now the deficit is up after the Trump tax cuts
Clinton cut taxes
He increased the top marginal tax rate
But we must see why the deficit went up
Spending
He cut a huge capital gains tax