Rush Limbaugh is strongly opposed to President Obama’s stimulus package. He has written an opinion piece the Wall Street Journal, recommending for more corporate tax cuts and to suspend capital gains tax for a year.
I say, cut the U.S. corporate tax rate – at 35%, among the highest of all industrialized nations – in half. Suspend the capital gains tax for a year to incentivize new investment, after which it would be reimposed at 10%. Then get out of the way! Once Wall Street starts ticking up 500 points a day, the rest of the private sector will follow. There’s no reason to tell the American people their future is bleak. There’s no reason, as the administration is doing, to depress their hopes. There’s no reason to insist that recovery can’t happen quickly, because it can.
Err…how well did the Bush tax cuts to big corporations and the ultra-rich help the US economy with its trickle down effect?
Are there really people who don’t invest because the capital gains tax is too high (and by too high I mean half as much as regular income tax)? What do they do with the money instead of investing it?
The lock-in effect still involves people investing their money. They just don’t cash out. And do you really think hurdle rate is a factor when you pay 15% on profits? Again, what is the alternative for increasing your wealth?
There’s a serious debate in this country as to how best to end the recession. The average recession will last five to 11 months; the average recovery will last six years. Recessions will end on their own if they’re left alone. What can make the recession worse is the wrong kind of government intervention.
Mr. Limbaugh is counting only very recent recessions for this avg. While they do end on their own, this typically results in longer and harsher recessions, with potential for some very nasty effects.
In other words, lolbaugh.
Supply-side economists
No such thing.
That happened under JFK, Ronald Reagan and George W. Bush. We know that when tax rates are cut in a recession, it brings an economy back.
Generally a disfavored response, as fiscal stimulus is much slower than standard monetary responses via OMO, and deficit spending is generally more effective than tax cuts. Mr Lolbaugh knows not ass from face.
Fifty-three percent of American voters voted for Barack Obama; 46% voted for John McCain, and 1% voted for wackos. Give that 1% to President Obama. Let’s say the vote was 54% to 46%. As a way to bring the country together and at the same time determine the most effective way to deal with recessions, under the Obama-Limbaugh Stimulus Plan of 2009: 54% of the $900 billion – $486 billion – will be spent on infrastructure and pork as defined by Mr. Obama and the Democrats; 46% – $414 billion – will be directed toward tax cuts, as determined by me.
This is the stupidest thing I’ve read since that time I read something stupid. Besides, Lolbaugh should only get the 1% wacko portion.
U.S. corporate tax rate – at 35%, among the highest of all industrialized nations
Short form, Lolbaugh is not just wrong, he’s hilariously wrong.
In this new era of responsibility, let’s use both Keynesians and supply-siders to responsibly determine which theory best stimulates our economy
Let’s instead use stuff that actually works, instead of outdated or farcical theories!
Would it work? I mean, a little bit. Highly inefficient. Shoveling money at consumers is far more effective. And for any other recession than this one, OMO is the preferred method of dealing with the situation because recessions are almost exclusively about the money supply.
The House Republicans need to wake up and realize no one is going to buy their snake oil anymore. That, and take a long walk off a short pier.
I think it’s GREAT that not one of them voted for the package today-- that way they can’t take any credit when things start looking up by the end of this year.
In addition to which, capital gains tax is applied to what you have gained when you sell, not what you invest! A one year moratorium on taxes from sales isn’t going to lead to money going in, it’s going to lead to money going out (tax free) as people take advantage of the tiny window to sell!
Fucking idiot. “Lolbaugh” is great, thanks for the term Aeon221.
The only people who will pay capital gains taxes in one year’s time are people who are investing now. The rest of us won’t have made up our losses yet.
Something like every dollar of tax cut provides $.75 in stimulus, whereas just funneling the money directly to people provides something like $1.25. Leave it to Republicans to find the most inefficient way possible to stimulate the economy. I don’t think America can take much more of these buffoons – at least this time they aren’t in charge.
You’d think none of these a-holes had taken an econ class ever. It’s called “aggregate effective demand” and when you don’t have enough of it the economy shrinks, end of story. The government has to goose effective aggregate demand for things to start turning around. Just giving tax cuts to people who are going to bank the extra money (because they tend to be in circumstances where they’re not down to not having money for basics) doesn’t help anybody but them in this circumstance. Aaargh! It makes me want to tear my hair out.
I just rebuilt a computer for someone who still believes this crap even though they’re lower middle-class. They have no clue how this stuff works, but defend it like Gospel. They are totally brainwashed, but are good people. It is really sad.
Politico has learned that tomorrow Americans United for Change, a liberal group, will begin airing radio ads in three states Obama won — Ohio, Pennsylvania and Nevada — with a tough question aimed at the GOP senators there: Will you side with Obama or Rush Limbaugh?
“Every Republican member of the House chose to take Rush Limbaugh’s advice,” says the narrator after playing the conservative talk radio giant’s declaration that he hopes Obama “fails.”
EDIT: Rush decides he will decide for the GOP:
Asked to respond, Limbaugh had a message for his party.
“Senate Republicans need to understand this is not about me,” he wrote in an email. “It is about them, about intimidating them, especially after the show of unity in House. It is about the 2010 and 2012 elections. This is an opportunity for Republicans to redefine themselves after a few years of wandering aimlessly looking for a ‘brand’ and identity.”
These 2 statements contradict each other. Good people don’t dogmatically defend things they don’t understand. The willingness to honestly question your own (and others’) beliefs is a cornerstone of being good. Especially in a democracy, where every citizen has an obligation to do so.
