The biggest issue this election, for me, was taxes. I've sat and listened to a ridiculous number of accusations of socialism and that Barack Obama was going to take from the rich and give to the poor.
Thats a ridiculous claim. Not only can it be disproven but it simply isn't something to be fearful of. Cutting taxes for the largest consuming base will bolster the economy and strengthen the demand of its people. This translates into buying.
One such argument that I've heard going around from this is that the money will be saved like with the stimulus checks or put into paying off debt. And this would be a plausible argument, if the tax cuts were a one time thing. As we know with taxes, we get hit every paycheck. So cutting the level at which we are taxed translates into a larger paycheck at the end of the week and an increase in what is known as expected income. This expected income is what people budget off of, and is the income with which we plan to spend. Cutting taxes is most definitely not going to change the marginal propensity for Americans to consume, and will increase the magnitude at which Americans consume on goods and services (which are provided by that small business).
The case in which Americans overwhelmingly saved or paid off debt with that stimulus check is that this check amounted to unexpected income. Income of this type is typically saved, or used to pay off debt since the recipient is unsure whether they will ever be thrown such a bone again.
So...stop worrying about taxes destroying the economy, it simply isn't a sound argument
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