McCain: more important to cut taxes than balance budget
Click the play button to see what Jack and our viewers had to say.
FROM CNN's Jack Cafferty:
Cutting taxes and stimulating the economy are more important than balancing the budget according to John McCain.
The presumptive Republican nominee is taking issue with the Democrats' suggestion that he's out of touch on the economy. McCain says he'll cut taxes even if it means running up more deficits. McCain thinks it's Hillary Clinton and Barack Obama who are out of touch since they want to raise taxes during a recession.
McCain says his economic plan is solid, based on extending President Bush's tax cuts – the tax cuts McCain opposed until he got the nomination. Now all of a sudden he thinks they're terrific. He thinks federal spending is the problem and pledges to "scrub" every government agency of wasteful spending. Where have we heard that before?
John McCain is also backing off from his promise to balance the budget by the end of his first term. Flip flop – just like with the Bush tax cuts. Now he says it may take two terms. And by then it will be somebody else's problem.
Today's Wall Street Journal reports that McCain's proposed $650 billion in tax cuts per year – mostly for corporations and upper-income families – would either make the federal deficit "explode" or require unprecedented spending cuts equal to one-third of all federal spending on domestic programs.
One expert says the chances of McCain cutting spending by that much are "nonexistent." In fact, a study of federal spending going back to 1976 shows there's never been a cut in domestic spending as large as what McCain is proposing.
Here’s my question to you: Do you agree with John McCain that cutting taxes is more important than balancing the budget?
Interested to know which ones made it on air?
Tom from Florida writes:
Balance the darn budget! All of us have to and the Feds should also. Regardless, he can't cut taxes because there just is no money because of the war. If he wants the damn war he needs to be a man, tell the truth, and pay for it by raising taxes. But he will not say this because he's just like all the rest. So much for straight talk!
Keith from Twinsburg, Ohio writes:
Jack, McCain has it backwards (just like the current administration). Why don't we try something new? For each new expense, provide a means by which it is financed. Pay as you go. Novel idea, no? These "tax cutting headlines" are just that, headlines. The next two generations will never be able to payoff this last 8 years. We should be ashamed of ourselves.
Keith from Irving, Texas writes:
There's only one thing I agree with John McCain on: The economy IS not his strong suit.
Paul from Toronto writes:
A recession is no time to be frugal. The only escape is cut taxes, cut taxes, cut taxes and let the people spend, spend, spend. The U.S. consumer will once again have to get the economy going and save the country.
Adam from Austin, Texas writes:
Jack, I'm 21 years old and I'm going to graduate from college in less than two weeks. I don't like that McCain is going to put this problem on my generation. Giving even more tax cuts now means more taxes for the next generation later; responsible parents don't steal from their children.
Kathy from Georgia writes:
Jack, We all know that McCain is old school. The only time that old school is relevant is in morals and music.
@jackcafferty on Twitter
Who cares about cutting taxes if you aren't cutting spending? "Conservatives" love to harp on less government, but never less military-industrial complex which equates to more spending.
-Brett
Cincinnati, OH
Jack, McCain has it backwards (just like the current administration). Why don't we try something new.... For each new expense, provide a means by which it is financed... "Pay as you go.." Novel idea, No.?
These "tax cutting headlines" are just that... headlines.. The next two generations will never be able to payoff this last 8-years... We should be ashamed of ourselves.
There he goes again. Republican code words. Tax cuts sound like a good thing. But for whom, and for what reason? And to what effect? McCain is talking about making the Bush cuts permanent and "simplifying" the tax code. no matter how he phrases it, he is talking about continuing the widening of income disparity. Less taxes for the wealthy, which contrary to the ignorant opinion of Charlie Gibson, does not generate more revenue. How much misery do we have to endure before they give up on supply-side hocus pocus? It does not, as claimed, stimulate investment or create jobs. It just lines the pockets of the Republican base. And creates larger deficits. Eisenhower is surely rolling over in his grave to see what now passes for conservative thought, if that's not an oxymoron.
No. Balancing the budget is more important. Politicians should never promise to cut taxes. As costs increase it's only natural that taxes would increase. Citizens need to understand that taxes have to increase in order for the Government to do its job. If they don't increase taxes, they'll still get the money from us some other way. The problem is not an increase in taxes; the problem is that the government has not been managing the taxes properly. Taxes would be a joy to pay if we knew we had free health care and other benefits.
That's a typical Republican response. How do you solve inflation? Tax cuts. How do you get us out of a recession? Tax cuts. Deficit? Tax cuts. Foreign policy? Start a few wars, and then tax cuts.
John McCain is like a cross between George Bush and John Kerry. Like Bush, he believes that tax cuts will solve all of the world's problems. Like John Kerry, he's a war hero, and a flip-flopper. We're sorry we voted for Bush, and we didn't vote for Kerry in the first place. What makes McCain think he can win by cloning both of them?
I sure hope that Obama has enough to swift-boat this old geezer before it's too late.
Every year we fail to balance the budget we hand more of our economic control to China. Balancing the budget is just as valid a national security concern as anything going on in Iraq.
McIdiot doesn't care about anything other than padding the McPockets of his McWealthy cronies ( and his own )
There's only one thing I agree with John McCain on:
The economy IS NOT his strong suit.
Cutting taxes rather than balancing the budget or, better yet, attacking the national debt is a little like cleaning your living room while your roof is on fire. It may make you feel good in the moment but it will all go up in flames in the end.
Cutting them isn't as necessary as keeping them where they are. We need the money, but the government does too, Jack. I doubt the average American wants to gouge into their pockets even more to pay for all these new programs that all three candidates are proposing..
A republican who thinks tax cuts for corporations and the wealthy are
more important than fiscal responsibility, now there's a surprise.
Wanna see McCain's brain implode, ask him what's more important
winning the war in Iraq or tax cuts for the wealthy. My guess is his
stammering stumbling spin act on that question would rival
anything dubya has demonstrated.
When George Bush took office, our National Debt was $5.7 trillion. Today, it's $9.4 trillion, a 65% increase in just seven years. Interest on this debt is now $1 billion per day. It should be obvious to anyone that we cannot just continue Bush's fiscal policy.
Ed Reed
Port Aransas, TX
We don't need any more tax cuts for the wealthy. We need to cut our out of control defense budget (we spend twice as much as the rest of the world), stop spending billions on illegal aliens, and stop throwing billions down that black hole some call Iraq. That should balance things out. Every time we have a problem we think that we can fix it simply by throwing money at it. McCain is the last person this country needs in the white house.
John in Three Rivers, MI
Jack, we in Canada had this same conversation about 15 years ago, right after the ruinous recession of the early '90s. Though it wasn't popular at the time, and our leaders made more than a few errors in judgement on where to cut the "fat", our federal government has had balanced budgets now for half a generation (many years having posted surpluses, allowing us to pay down our debt). Following suit, most of our provincial governments also post balanced budgets year after year. It would seem outrageous to now allow our leaders at either the provincial or federal level to intentionally run a deficit. I grant you that our political and social climate is somewhat different than that of the US (ie, we pay a lot more in taxes), but, although painful, our governments have led by example. What message does it send to a nation's citizens when those who would presume to lead us consistently spend more than they take in. "Fight the recession – go shopping"? Please. For the next generation, it's akin to getting a maxxed-out credit card for an inheritance.
If the current economic policies are continued, along with this war; by the end of John McCain's second term we'll be lucky if the dollar has equity with the peso. He'll have to bring the troops home to suppress the food riots. The "Great depression" will look like prosperity in comparison.
Many years ago the Republican hero, Ronald Raegan, complained that President Johnson should be taxing us to pay for the war in Vietnam. Guns and butter was a bad policy. Of course when he became president he fought the cold war with borrowed money. When President Bush invaded Iraq on borrowed money MCcain seemed to have complained about our large debt. Now he is trumpeting the same old line. This country is close to bankruptcy and someone should be making it clear to the people. John McCain is incapable of that simple fundamental of economics.
If cutting taxes will stimulate the economy it will help to balance the budget steadily. More than anything, this country needs a good fiscal policies and solid financial regulations. Subprime crisis would have been avoided with tough regulations on lenders. We can only balance the budget with a strong economy and a good financial disciplin. Tax cut may help to boost economy to a certain degree, but there is so much more to do. So McCain is not wrong. But he is not completely right either.
Nuwan from Houston, TX
No!!! McBush didn't say that??!!!?? If it weren't for Bush's Give Away To Big Corporations & His War In Irag we could have balanced the budget a long time ago. For John McBush, the "Hawk Against Pork" to say that balancing the budget isn't as important as giving more tax breaks to his rich corporate friends is proof that he's gone around the bend.
A $9 trillion national debt is racing to 10 trillion dollars, the dollar is sinking against other currencies, and McCain calls for tax cuts. Our Treasury, our national bank is empty, broke. It looks like we can't afford our country anymore. To stall the foreclosing of our home America, we borrow trillions and seek foreign nations to buy bits of us. When did McCain decide it was a bad idea to pay (taxes) for maintenance of our great democracy? When did he and the so called conservatives decide "the market" was more important than "we the government" and the government was "the market" not "us"?
If the people are allowed to keep more of their money the people will be allowed to spend America out of the economic slump. After we are out of the economic slump McCain may be forced to raise taxes, to balance the budget the question is will he keep the tax cuts.
Howard
Joshua Tree, Ca
Unfortunately many new conservatives cling to the idea that if a candidate promises them a bigger tax refund, they should vote for that person. It seems like if we learned anything as a society these past eight years, it should be that greed isn't good. Today in New Orleans Bush said we are not in a recession. At least McCain knows we are in one, he just doesn't have a clue how to get us out.
The only tax cut I want to hear about, is the reduction of the $2.50 tax on gasoline that has been "phased" in the past few years as a result of that magnificient trillion dollar reduction of Bush. I, also, would like to hear about the tax on food, etc. that is being "phased" in as a result of Bush Administration policies.
McCain has always said the opposite of his current proposal. A continuation of Bush policies will finish his election chances off.
Harry
Ky.
McCain has been the champion flip-flopper of all time. Giving more tax cuts to the rich and corporations is beyond disgusting and will completely destroy what is left of the economy. All anyone has to do is leave the house to see what bush's tax cuts have done. Roads and schools falling apart,soaring gas and food prices,disappearing health care and a rapidly disappearing middle and working class. We are like the Roman Empire and we are collapsing under the weight of our own ignorance.
Can someone PLEASE explain to me how we would pay off our War debts? If we cut taxes, will we cut programs then? Or would we just take 100 years to pay the debt or would we just not pay it at all?
I think it is so ironic that the very same people who want to cut taxes are willing to spend 10billion a month (of whose money) in Iraq. How much of that money have we borrowed? How much of our government programs have been closed down or how much have services been downsized to fund this war?
Where do the Republicans think money comes from??? Heaven?
My God, could you imagine 4 years of McCain economics? How does he plan on paying off all that debt? Borrow more money from China? The fact that he is basing any part of his campaign on Bush policies should be a red flag. Don't these politicians ever learn that policies that fail shouldn't be repeated? It's like the concept of reality doesn't exist in Washington. This is what happens in a two party system. You end up with only two solutions to every problem which are polar opposites, and they're both wrong. I'm really tired of voting for the person with the least amount of terrible ideas instead of voting for the person with the most good ideas.
Jack, McCain's cutting the taxes is only political retoric. If McCain knew anything about finance , the basis of growth for any company starts with balancing the budget. Maybe he should take an economics 101 class at a local junior college.
Jack, when I was working in a high level management position with a large company, I voted Republican so I could make more money and have lower tax rates, especially capital gains. Now that I'm retired, I vote Democrat and that's the way it really is in Corporate America. McCain is wrong and he would have been wrong when I voted Republican. By the way, I was wrong as well.
Cutting taxes is the winner's theme in every election. Just like a dog who just had his bath, voters feel refreshed and vigorous and think they are better off when they hear that rhetoric. The Boston Tea party should tell everyone the power of taxes...remember?
Jack, cutting taxes and not balancing the budget is how we got into this mess in the first place. You can't keep spending more money than you're taking in because eventually it will catch up to you. That is true in every day living and its true in big government. Plus the expense of the Iraq war with no end in sight and paying for with borrowed money really speeds up the process and here we are.
Republicans must live in a parallel universe where money comes from the sky on a flaming pie to pay for wars, infrastructure, running the government, paying Senators and other budget items. Look at the last 8 years to get an idea of how well John McCain's plan would work. The country is on the brink of a depression and this guy wants to cut taxes for corporations and fat cats, no doubt adding to the debt on the Chinese Visa card. They wouldn't know a budget if it hit them on the head. The conservatives tell us that tax revenues actually increase when taxes are cut. Can you find out what they're drinking? I want some..
That's gotta be the dumbest statement I've heard from a politician for a while. It doesn't take an economist to understand that debt accumulation devalues the currency and sooner or later the debt has to be paid. Of course McCain is 71 years old, so he could care less. Not like he's going to pay the bill.
Hi Jack:
I think Mr. McCain should save us allot of time and quit now.
Ron K. San Diego
McCain will always have a tough time convincing anyone of anything when it comes to the economy.
When McCain keeps flip-flopping, he only shows that not much tought has gone into his statements. Plan...which plan?
Jack, I hope Republicans see how condescending McCain's attitude is.
It's like he's handing out shiny quarters and saying "Run along and play now, and don't you worry your pretty little head about grown up concerns."
Boise, Idaho
Dear Jack,
Let's see, we managed to come pretty close to a balanced budget in the 90s. That helped lead the economy to its biggest boom in more than thirty years. Since 2001, we have cut taxes like crazy (during a war, no less!), and now the economy is in the tank. Like a stopped clock, Senator McCain was right about one thing: he doesn't know much about the economy.
Thanks and take care,
Steve
Montgomery, Alabama
The U. S. is nine trillion dollars in debt and is fighting two wars on borrowed money. If McCain thinks cutting taxes is an option he's insane.
I do not agree and, as a CPA, I am a huge proponent of lower taxes. At this point, the single most important thing our elected officials can do is get control of spending in Washington. That being said, they need to go after the 'low hanging fruit". My opinion? Pull out of Irag completely within 12 months. Just calculate all the money we would save and there would be no need for a tax cut. Simple as that. Let Irag take control of it's own problems. They had enough of our blood, money and support!
Jack,
McSame just doesn't make any sense!
Hell, no.
We already gone $4 trillion in debt from the last 7 years
Jack
I saw John McBush on the Sunday talk show and boy is he out of
touch with the aspects of our economy. A balanced budget is
when you get $ 1388. in social Security and spend $ 1388. to
live on.
Bu the way where is McBush"s wife's tax return?
Jerry
Roselle, Illinois
Jack
It's time we get our house in order. We have to balance the budget. At the same time we need to put back the regulations we removed that made this mess possible.
No becuase cutting taxes is not going to help me it is going to help wealthy people which i am not so yes raise the taxes so we can not owe the Chinese our Grand kids soul
What John McCain said doesn't dignify an answer. Guess he wants to sell out to China, and that is what he will do if elected.
I would love for someone in the media to ask John McCain this question-The Iraq war is currently being financed by us borrowing from China, will you continue to follow that practice? The next question needs to be-What are you going to do if China decides to call in that debt, wether it be in cash owed or favors for them that are against the interest of Americans?
I wish the old version of John McCain were here. The one who said you can't cut taxes with a war you don't know how to pay for. This John McCain is blowing smoke to get votes.
Cut Taxes on what? If we keep losing 200,000 jobs every quarter there will be no taxes. If we keep foreclosing houses there will be no taxes there.....Only the Democrats can help us now......
Well of course he doesn't care about the trillions of dollars in debt. He won't be here to pay it off. There is always another reason to keep us in debt. For our Childrens sake we have to start showing restraint in out fiscal policy.
Oh my! What is he thinking? Frankly, we need both.. A balanced budget is critical. Here is hoping he selects someone who is aware of the economy. Perhaps he agrees with Baby Bush..."we are not in a recession; it is an economic slowdown". Ask most any American...we are SUFFERING!
McCain really doesn't know what he's talking about unless it's about war. Then again the government doesn't have any money so how can he balance the budget with zero dollars?
At 71 years old, John doesn't worry about the national debt. he will not live long enough to pay one cent. this is a repulican way of life. live today and let some one else pay the bill.
No. A huge portion of tax collection goes just to service the gigantic debt that McCain has been contributory as a U.S. Senator in creating. And you can bet that as President, which ain't gonna happen, McCain will spend huge taxpayer money fueling his helibopter and 747, flitting about at taxpayer expense enjoying the perks of 'exalted prez' just like Bush does. McCain has no credibility where economy is concerned. For that matter, neither do the Republicans.
Balance the darn budget! All of us have to and the Feds should also.
Regardless, he can't cut taxes because there just is no money because of the war. If he wants the damn war he needs to be a man, tell the truth, and pay for it by raising taxes. But he will not say this because he's just like all the rest. So much for straight talk!
Cutting taxes does not fix gas prices or food prices. It is a temporary fix that will not help balance the budget later on down the line. Balance the budget first, then cut taxes if it is possible.
The deficit is causing all the problems, the republicans have wrecked the economy. The only rational solution is to raise taxes on gasoline, to be used only to pay down the national debt.
I would say that spending has to be cut too, but not domestic spending, only spending overseas, like Iraq spending.
Let Me see cut taxs and grow the defficet Jack I'm sorry I will have to wait untill I find a billonair to marry before I can make a decent dission .
No, but he will stay in Iraq for 100 years.
Before cutting more taxes we need to balance the budget to restore lost leverage on the world stage.
Jack,
There is so much waste in our Government Spending no American
should want to give another dime .
Once spending is under control and excess eliminated than we can talk about eliminating the current tax cuts if needed.
(without extending they will expire) Should be the same as securing
the border first than solve comprehensive immigration issues.
Yes. Yes. Yes. More tax cuts. It is like when I raised my kids. Giving them whatever they wanted was easier than forcing my will on them. Now I bring them cookies and they share them with all their cellmates.
How can you keep talking about cutting taxes and continue to stay in Iraq, Afghanistan, and possibly Iran. How does that work. Where will the money come from. Can someone please explain this too me. Where is the money going to come from. It is just like everyone saying we need universal health care but when they hear you have to pay for it no one wants it.
This stuff is not free. Here is a thought lets tax corporate America more and cut all of those Cayman Island loop holes that they have.
Let me see if I have this right: McCain wants to cut taxes. I will then take that money and give it to an insurance company who will decide what treatments I can get? I'd rather pay the government to get it right the first time.
He voted agaisnt the bush tax cuts because they would increase the debt. And now he has changed his position. But wait a few months and it will change again
No... Cutting taxes is just cutting what your dollars will buy. Simply remember how many Euros or gallons of gasoline your dollar would buy, just after 8 years of Bill Clinton's fiscal stewardship, and before Bush's "Peter Pan Gang" got in the White House. I hear Michael Jackson's "Neverland" is for sale. McCain should buy it and retire.
Given McCain's flip flop on his principles, first in the GOP convention in 04 to position himself to become a presidential nominee, now in the 08 primaries on Bush tax cuts to rally the base, clearly, getting elected is considered more important to McCain than balancing the budget.
The best way to trigger economic stimulus is not by making sure the people who are rich get richer. I've had enough of these voodoo economics and politicians feeling that they can conjure money out of thin air without devaluing it. We need to work to restabilize our economy and bring our debts and deficits to manageable levels.
I enjoy the paranormal, and some of the occult sciences... Yet, in my readings of these topics, over the years, I've never encountered a "re-incarnation" of a person, while they are STILL ALIVE! In the case of Senator McCain, the more he talks, the more I know that McCain is the living embodiment of George W Bush, and, as such, has a fighting chance of being "re-elected", this November! (Wasn't it "The Life of Riley" where actor William Bendix said, "What a revolting development THAT is!"?) Nothing to look "forward" to...just more of the same disastrous policies, and no hope in sight...
No and to borrow a phrase from Biden: All McCain says is Tax Cuts, a Noun and a Verb. Aside from warmongering, he doesn't have anything else and these idiotic tax cuts for the rich, only mortgage our children's future more. If you like what you have in the White House now, you're going to love 4 more years of McSame. Quite frankly, I'd trade in the Bush tax cuts to have a government I don't resent, every day.
Jack: I'm sorry but the distinguished Senator is out to lunch. You can't spend what you don't have. Borrowing and borrowing to pay for war and all the other things that politicians want is just going to be the ruin of us. Look what Afghanistan did to the Soviet Republic.
I think he has gone by by. He is too old and has lost touch with what is going on in the country.
Jack,
I am appalled by this notion. Spending what we don't have is the reason we got into this credit recession anyways. We need to pull back the reigns on the economy and promote responsible spending, starting with the U.S. governments massive national debt. Balancing the budget is far more important right now than cutting taxes...where do they get these ideas?
when I have to make a decision on my house budget I first have to start cutting my expenses not my income! goveernment should run itself like a household and we would be much better off. I guess that is to simple an approach to use.
ellen
bella vista
No. It's sad to see how far he's fallen from his "maverick" days. He now really IS running for Bush's third term.
Cutting taxes when you have Budget Deficits is like Mortgaging your home to smoke crack. It may feel good, but in the end you've got nothing.
What good are tax cuts to anyone if our dollar isn't worth the paper it's printed on. We need to balance the budget and get our economy back on track....This mind set that the rich and powerful are worthy of "handouts" from the government is ludicrous!
Of course not! The Republicans still haven't learned that trickle down economics does not work (for the Middle Class anyway). McCain, who is not interested in economics, will continue Bush's disasterous policies including the tax cuts. If you're enjoying the recession, just wait for the depression that will surely come under McCain. It will be a barrel of laughs!
Yes I agree, but based on the above responses, it seems like most of the people on this blog haven't had the experience of paying excess taxes for big wasteful spending program.
Large pro-growth tax cuts combined with massive cuts in wasteful spending is the only way to fix our economy.
Yes, cut the taxes for low & middle income tax payers & balance the budget. We are sick & tired of Govt waste. Increase taxes for wealthy, rich & super rich.
CA
Bush cut taxes and what did it get us?? The worst economic disaster of my lifetime. The only thing keeping my family afloat is the fact that we have been resposible and live within our means. The federal government should live within it's means. That means if you can't pay for it you don't get it including this war that is like having a boulder tied around this country's neck. This nation and it's people are sinking and this "gentleman" wants to cut taxes. The sad part is there are enough greedy people in this nation who agree with him. How many $500.00 pocketbooks do people need anyway???
Corporations and the upper class will need the McCain tax breaks...it will help them to soften the blow when the rest of America begins filing for bankruptcy.
Seriously Jack, does anyone in middle class America really believe that his idea is feasible, let alone good for our country? It might be a great slogan for campaign season, but its a lousy economic plan
Absolutely not! What is this Republican, anti-Robin Hood notion that we should help the rich get richer and simply snub our noses and leave the bill with the lower and middle classes?! It's absurd! As a middle-class college student, I hope, hope, hope that "McSame" does not take office and proceed to increase the abyss of deficit that my generation will be left with.
-Julia Hays from Pitman, NJ
McCain = another 4 years of the status quo.
McCain is falling for the Laffer Curve argument red:lower taxes raising revenues. Any politician using this discredited approach should be laffed [sic] out of office for Laugher Curving.
McInsane is bass ackwards. The "trickle-down, voodoo economics" Bush tax cuts should die. Taxes should be reduced for the middle and lower income tax brackets to stimulate the economy. Business taxes should be reduced if reflected in consumer pricing to stimulate the economy. Tax credits should be given to businesses that invest in green technologies, science and education, and rebuilding our infrastructure. And taxes should be raised for those businesses that pollute and outsource American jobs overseas or hire foreign workers via visas.
Individuals have been using Visa and Mastercard to support a life style they cannot afford. The U.S. has using China and other countries as a credit card. This is not an economic POLICY. STOP THE INSANITY!!!
We have a ten trillion dollar debt...if you won't balance the budget now then when WILL you?
Seminole, Florida
Absolutely NOT, they go hand in hand.
Whoever wins in 2008 they are going to inherit a "MESS" from the ignorance, arrogance and incompetence of Bush-Cheney. As to McCain, cutting taxes appeals to his base, the Republicans who wage war with borrowed money from China! It is questionable whether America will ever recover from the stupidity of the Bush administration, if you want to call it an "administration" instead of the incompetent "chaos"it has been.
Its terrible. I just cant see him in office. Why vote for him. He even said he doesnt know anything about the economy. Come on! Cutting taxes is more important than budgeting is dumb. Lets elect Ms. Elley, my daughter as the next president if Mcain wins, anyone even a 6 year old will be better.
McCains claim is so bogus, his tax cuts are for the Wealthy and Corporations, if they were for the plain old middle class citizen then I would agree, however, anytime a Republican says they are for cutting taxes you better hang onto your wallet because all that means is the rich will be richer and the middle class will take it up the, well you know.
Sue-Idaho
I understand why cutting taxes is popular and also why sometimes cutting tax rates actually leads to higher revenues (see Laffer Curve). However, I'm concerned about just cutting taxes without analyzing the overall benefit / cost. We need revenues to pay for government programs. We also need to control spending in government programs. My fear is that we are raising expectations of what government will provide to levels that are just not sustainable. It would be nice if government would/could provide world class healthcare, education, job security, cheap energy, retirement, etc., etc. However, when you ask people to make their contribution (i.e., pay their taxes) to support it, nobody wants to. They want someone else to pay for it.
People seem to forget that JFK said ask not what your country can do for you (like provide all kinds of services/benefits); ask what you can do for your country (like maybe pay some taxes).
Well, looks like John has been a great understudy for George Why-the-hell-worry-about-the-average-American Bush.
The Republicans are destroying our country!
McCain hasn't got a clue about the economy, but I'm sure he'd be happy to put the US and our future generations another Trillion dollars into debt to fight his stupid war and cut taxes for the corporations that ship our jobs to India since he needs the Lobby and PAC money to finance his scare you to death campaign.
The constant cutting of taxes to the extremely wealthy makes absolutely no sense and is bad for our economy. If cutting these taxes was to have the effect of creating jobs, I'd like to know where these jobs are (maybe overseas). It seems we lost 85,000 jobs last month and 65,000 the month before. I am sick of the Rebublican approach to the economy. It's a poison pill.
No and its not just the fact that we are passing on debt to our children. It fact, we are already paying off the debt to the tune of well over 400 billion dollars each year. That money is taken off the top of the budget as it is money we owe and it buys nothing more than the right to carry that debt over another year. Adding to that debt adds to the misery and is really part of the reason we are having those economic problems now.
Cutting taxes on millionaires and reducing government revenue of course is the best way to pay for the $3billion a week Iraq war. McCain apparently understands economics a lot better than I.
I use about 12 gallons of gas a week. Last week I only put in 9 gallons. I ran out on Thursday. A millionaire stopped in his Escalade and sold me some gas at 10.00 a gallon. So I guess it works.
Absolutely not. He is not capable of thinking through the economic process. I know they claim he is intelligent, but I think that is questionable.
Bla! Bla! Let's borrow more from the Chineese. Get real and give middle class America the tax break they need.
Diane, Portland, Oreogn
I think it's fuzzy math! Harriet
Republicans are a dying breed
While cutting taxes is a lovely idea, the choices of whom taxes are cut in favor of, especially by someone like John McCain are what is at issue. The need to balance the budget and drag our economy out of the hole is much more important than padding the wallets of our newly established upper "caste".
It's not important what McCain says at any point in time.
He'll forget what he said 5 minutes later.
I am a Dem. tell you this McCain wants to win but will not do any of those things that Bush did. McCain is using them to get his foot in the door then all hell broke loose.
Typical of todays media to give an either or to a complex question. Ya got to cut the tax burden on the American public. The dems promise to raise our taxes. The line is drawn folks.
Doesn't McCain understand that spending IS taxation?
Yes, it is more important to give the American people money than giving it to the government. The governemnt can go on whether there is $1,000,000,000,000 debt, or $10,000,000,000,000. However, if the American people have no money, they will not be able to afford their homes, afford their own health care, afford a better education, feed their pets, or live the American dream. Americans need more of their money now!
Why would anyone be surprised by McCain's take on the state of the economy? He admitted sometime back that he didn't understand the economy! As I see it, we've had 7+ years of tax cuts for Corporate America and the wealthiest Americans ... and we are now in a recession (I know, I know, Bush says we are not, but, hey, WE know better, right? Fact is – Bush wasn't a successful businessman UNTIL he sold the businesses!). Corporate America continues to outsource our jobs and the wealthiest merely play the futures ... one of the reasons we are now paying $3.50+ for gasoline. For those of us that are fortunate enough to have a job, we're finding it increasingly more costly to get to work!
But, we can HOPE that McCain will continue to sing the praises of Bush's failed economic policy, failed foreign policy, failed war on terror! He most assuredly won't get the votes of the middle class – and we outnumber the nation's wealthiest!
And this man lives here and running for President.
Please give me a break.
Hey Jack,
Its simple numbers. You make more than you spend than your going to be in a deficit. Cutting taxes will offer temporary relief to some Americans. Balancing the budget should come first. Your country is already in a 9 trillion dollar deficit. What are you gonna pay that back with?
-Andrew,
From Ontario, Canada.
Well it is obvious that McCain never got around to reading Alan Greenspan's book.
No, No and No. I hope he gets eaten by the bears in montana that he keeps talking about. He has no clue, and if he gets elected I am scared for the future.
McCain has finally gone off the deep end. I don't understand why he thinks that giving more tax cuts to the rich and corporations will help America. They haven't been working during the Bush years and that won't change if he were President. We need to cut the pork-barrel spending and stop throwing money away overseas in order to help balance our nation's budget.
Yes, I need the money.
Only a "Bushie" with a silver spoon in his mouth (or in his wallet) would take such ridiculous positions. We need to cut spending AND raise taxes. Jack, you and I have to pay our credit card balances - so should the government.
Jack
Ask the champion of flip-flopping to commit to NO NEW DEBT???
No new taxes is just spin if you are borrowing more from China. Does he not have a clue on how we got to where we are today. The war, unbalanced budget by Bush, and corporate greed are good starters..........
7 years of disaster is enough...I'm broke 🙁
Oh YES! ::dripping with sarcasm:: After my exemptions and deductions I paid $3 this year. Wouldn't have paid that except we figured it would cost almost that much to drive to the bank and make a $6 deposit in my IRA. Balance the Budget, Pay off the debt to the Chinese, Take Care of Americans. McCain is McCan't It Through My Head What America WANTS.
It would be irresponsible to burden our children and grandchildren with increased debt because of tax cuts benefitting corporations etc. etc. Expenditures cuts will never be adequate and are likely to be "on the backs" of the poorest of Americans. McCain "get real".
Jack, only a mentally impared voter could agree with cutting taxes over balancing the budget. Unfortunately, as evidenced by our current president, we know that there are plenty of them out here.
Allen
Hartwell, Georgia
Jack, McCain is completely wrong on the issue of tax cuts. This trickle down economics was started in the 1920s, you know, right before that stock market crash in 1929, and it has never worked! What makes John McCain believe that it will all of a sudden work now? What he needs to focus on, if he wants my vote, is cutting into some of these deficits and debt that George W. Bush has given us.
Cutting taxes without cutting spending increases the buget defecit
and devalues out dollar. We lose anything we gain. It's just a smoke and mirrors game the republicans have been playing on us for years now.
No! Tax cuts of the magnitude McCain is proposing are profoundly irresponsible. Our national debt has already nearly doubled under the Bush administration. We are now at risk of a total collapse of the US dollar. Inflation will soon spiral out of control, and the Fed will be powerless to stop a dramatic downturn in the economy.
This is really, really stupid Jack. As a taxpayer who will likely see my taxes go up under the Democrats, my vote goes to Obama.
Jack There is enough waste in the government a good business man could balance the budget in a year. Quit sending all the money overseas until balanced. Or file bankruptcy & start over. But alot of goverment officials would be walking the street. It's over built & outdated.
I would love to see Bush drink water while McCain is talking. Me thinks there's a puppet in our midst. He honestly has no idea what he's talking about regarding the economy. It's actually a shame.
Jack,
I watch this every day and I simply give up. How is this guy for the average man? I still find it hard to believe that people are actually voting for him. Like they said when Bush won, 51% of the country are idiots. Don't punish yourself and your pockets by voting for a guy that clearly stated he won't help the housing market, then 2 weeks later telling you he "feels your pain". If he wants to see pain, I'll show him my bank account.
The question doesn't ask enough! Yes, taxes can be reduced and would be most beneficial to everyone in the country as long as congress cuts their spending... I've read thru the responses above and I can see the point but people in this country need to wake up to the financial rape by congress. Cut taxes and drastically reduce the federal government's spending. Until that happens, we're going no where with the economy.
McCain just proved that he is dummer than I thought he was, will lie like Bush, and is sucking up to the rich and big business to get elected. I just thought that little Bush was Bad. Terry in Arkansas
Republicans ALWAYS promise a balanced budget and cuts in spending. In my lifetime they have ALWAYS run up huge deficits and, at least in the current administration, spent billions on an unnecessary war while the infrastructure and the economy have fallen apart. McCain will be no different, especially if he really keeps his pledge to stay in Iraq until we "win" (whatever that means).
Cut taxes? Where have I heard that before? Oh yea a few years back.
Jack, is this a trick question?
Evelyn
Toms River
No, Jack, and in fact, I find it hard to agree with anything McCain proposes. Between his clueless stance on the economy (flip-flops and all), and his desire to continue with the disaster in Iraq, he comes across as nothing more than "Dubya II"–in November, may the best Democrat–or for that matter, the best non-Republican–win.
It is clear that Herbert Hoover, I mean McBush, will lead us right into the Second Great Depression of the world. Just like what happened in the late 1920's early 1930's, after Herbert Hoover's tax cuts, America went into recession. It's so funny that Bush, like Hoover in 1930's, disagreed that the economy is headed to recession.
"We need to have more confidence in the stock market" Hoover claimed. "We are just in a slow down" Bush argues now.
Please don't elect McCain for our country's sake.
Armando, NJ – 16
Heck no. Just roll back the tax cuts on the upper income families and corporations that buy into this authoritarian conservative way of managing the economy that fills their pockets and leaves lower income families out to dry. We will never balance the budget if republicans keep issuing tax breaks to boost their approval ratings
It's shameful that we have had tax cuts during an ERA (7 years of Bush) in which we are at war and our troops have not been provided with the essentials they need, while our wounded and traumatized soldiers come home to an economy that does not allow them the dignity and honor thay deserve. I don't need a tax cut when they can't get a job or the health care they need. I don't need a tax cut when commuters fall into a river when the bridge they were crossing collapses. I don't need a tax cut when our teachers are getting laid off and oil company CEOs are getting richer. I could go on . . . .
Jack, that is a ludicrous idea. Even a freshman business student realizes you can't lower your income supply when you're spending tons of money, even if you are throwing billions out the window to fight a silly war. The fact that John McCain even suggests cutting taxes during such a period of gross overspending shows that he's extremely out of touch with the economy. Let's hope the American public can see how unfit he is and vote to keep Grandpa's hands out of the country's cookie jar.
Jack,
McCain doesn't have a clue. Cutting taxes will help the big companies but the big companies do not share the weatlh. The big companies will continue to look at their bottom line meaning they will not hire many new people and they will not pay them top salaries. The bottom line is that CEO and other high level people will rack in more money.
. It seems that the massive national debt, now over nine trillion--trillion with a T-–is something that can be ignored. All politicians speak against taxes and the raising of taxes. However, taxation is one of three ways-I can’t think of more--to erase the debt over a long period. The other two means available are renouncement of the debt, as Argentina once tried, and decreasing the value of the dollar to pay off the debt with cheap money, otherwise known as inflation. Yes, cuts in spending can be utilized, but that would not slay the debt monster. You could eliminate ALL spending except for defense, interest on the debt, and veteran care and it would take generations to decrease the debt.
Red Bluff, CA
Jack, McCain has lost touch with real Americans. I was a headstrong Republican until I watched our President squander our nation's wealth in the Middle East. I'm too poor now to support another Republican who will keep giving his tax bracket tax cuts while the middle and working classes keep funding the war overseas. We have to stop borrowing money from China and start facing the fact that Americans are stuggling. We don't mind high taxes IF THEY ARE USED INTELLIGENTLY!!! Start thinking for the people and not the party.
I am shocked at how complicit the people of the United States are in handing over their civil liberties, personal reponsibilities and their money to the federal Government. While I disagree with running deficits, I disagree far more with allowing the federal government to unfairly over tax its people. Letting the system go bankrupt may be the only thing that will deliver the type of change we so desperatly need. Our founding fathers are rolling over in their graves at the size and absurd reach our government has attained.
Jack,
I saddens me to see McCain now a days. He once had some solid policies and principals to stand behind. Now he has sold out his values to try to please the conservative base. His recent comments prove more than ever that he does not understand the economy. I once supported McCain but Obama got my vote today, and Obama will get it in November.
More tax cuts? It amounts to prosperity on Visa. Right now the poor are bearing the burden of the deficit in the price of gas. Keeping interest rates low when we have a large debt is the same thing a printing money. When you print more money the price of everything goes up. So instead of the rich paying their fair share of taxes in federal income tax, the poor are paying a disportionate amount in the price of goods and services. Low taxes are good proivded you can pay your bills. Otherwise, you pursue prosperity by paying your debt. John McCain admits he knows nothing about the economy, so who is the bigger fool, the fool or the fool who follows him?
What in the heck are they thinking. We are in a recession, bordering on going into a depression. Balancing the budget is way more important. I never did as well as when the Clintons were in office. zi have lost my home, car and now work for 1/2 the wages i used to. and now pay more than twice as much for gas and groceries. The dollar is worth less than Canadian money. And houses are going under in my area like wildfire. They are so out of touch with the middle class because they don't live in our world. They wouldn't make it in our world.
I think a balanced budget could lead to tax cuts. Maybe not directly in the since that I would pay less but indirectly in that I shouldn't pay more! Balance the budget to reduce it and pay off debt then the nation can do both. If balancing a budget is good enough for the home it ought to be good enough for the nation. I can't even afford gas much less borrowing money to pay for things I can't afford.
Lee – Wilmore, KY
Jack:
What's wrong with the statement by Sen. McCain? The taxes he wants to cut belong to us- the American citizens. We pay the taxes. We haven't had real spending cuts since the 80's. I am tired of the IRS taking my hard-earned dollars and wasting them on unconstitutional so called "entitlements."
Greg
Cumming, GA
Jack-
The media frequently talks about the "tax and spend" Democrats yet rarely alerts the public about the more irresponsible fiscal implications of the "borrow and spend" Republicans. Now John McCain shrugs off basing our economy and government on floating loans from China. Instead he offers more corporate welfare, more greed tax cuts for the wealthy and expanding military spending while slashing programs the benefit the economically disadvantaged, remember them Jack, Bush got into office by promising "compassionate conservatism" for those who do not own multiple houses and multiple yatchs. We ought to learn from history as this is exactly how Rome destroyed itself from within.
What is he crazy. Sure cutting taxes may help some of us now but its not the long term solution. We cant get out of a defecate if we are cutting taxes. Cut them once we are out of the red. He was against the bush tax cuts but now that he is running for president he changes his mind. We need a president that isn't going to continue what Bush policies. Look how well his tax cuts have change the life's of the middle and lower classes and how it really but a dent in that defecate.
In no way is cutting taxes more important than balancing the budget. I am a registered Democrat and I've always said that the only republican I would ever vote for would be John Mccain, but due to his recent stances on the economy I can see that I just can't. He has always been for a balanced budget, he said it seven years ago when he opposed the bush tax cuts. But now he is so caught up in being electable and pandering to the far right that he has completely lost his sensible streak of independence. He has become just another politician. It always sounds good to say your going to cut taxes but it is not the answer to all of our problems. John Mccain needs to stop playing politics and stand up for what's right. If he continues to pander to the far right he will continue to saddle more debt onto our grandkids.
The Republicans have been cutting taxes for years, it made no difference to my budget. My daughter is still graduating college in to a recession, my son can't get college loans for his Freshman year. Groceries, gas, healthcare, mortgage costs all have skyrocketed. Obviously more of the same isn't the answer.
In my house we cut the luxuries to get by now days. McCain needs to get in touch and cut his luxuries, namely the war in Iraq. It's time to make the Iraq government use their oil to pay their own recovery and let's bring the troops home to drink Mrs McCains beer and get this country back on track!
This is all the more proof that former President Bill Clinton was more of a fiscal conservative than any Republican since Eisenhower. When he raised the tax rates and balanced the budget the economy was booming. People did not lose the incentive to work, and corporations were not "taxed into submission", they became more resourceful and used more ingenuity to create new jobs to make more profits the right way. The Bush Tax cuts should not have happened they were given off of PROJECTED surpluses! The 90's economic boom was not an abberation, it was President Clinton being brave enough to make the country fiscally responsible
Friday Harbor, WA–Cutting taxes on the rich, at this time, would be a disaster. Republicans have had the mistaken belief that all the benefits from the wealthy and the corporations would trickle down and we'd all see improvement in our lives. It didn't work under Reagan and it won't work under McCain. The corporations during the Reagan era took the money and ran. They did not reinvest in America. They went offshore and kept the money to themselves. Real good flag-waving Americans, eh?
So, he flip flops on the ideas and since time is narrowing down, he all of a sudden believe that tax cuts are necessary? Get real, the weakened dollar is already hurting from the astronomical deficit that the US currently has, tax cuts will only increase this defecit, thus increasing the costs of gas prices, food, and everything else in this country that's for sale! The insinutation that the American people are that Stupid is repulsive! How about we eliminate the Republican party from the ticket this year and see Senators Obama and Clinton battle it out for the Preseidency! Republicans have already SCREWED us for the past eight years, let's get them out of the White House!
John McCain in part of his economic policy speech offered relief from federal gas tax from Memorial day to Labor Day.
The federal gas tax which is about eighteen cents.
I disagree with John McCains tax cuts. It's just the same old tax cuts that President Bush purposed. We need tax cuts for the middle class not the rich or the oil companies. The oil prices are already high enough and food prices is already costing us so much that we can't hardly afford. We need a President that can talk about what he means and bring tas cuts to the middle class.
Brad
Mexia, Texas
Balancing the budget has been an issue since I was in Mr. Rosbach's Sociology class in high school (1982-83). He said back then that there is no such thing as a balanced government budget; the numbers just get moved around to make it look better. Pesonally, I agree with tax cuts, but not for corporations. Small business and personal cuts, yes. A simpler tax code would be better as well. I'm not even sure what is meant by a balanced budget for the government. It certainly isn't the same as balancing your money at home.
If Mrs. Clinton loses she needs to get out of the race completely. But, knowing how stubborn and determined she is she will go the distance. If that happens she will tear the DNC apart and give the RNC an advantage. I being a Republican and a 29 year Army veteran do not want John McCain in the White House.