Reducing Taxes (Issue #1)

The Republican party advocates reducing taxes.  Supporters of this idea believe that consumers and businesses will have more money to spend. As a result, the economy can be stimulated quicker. Also, businesses will expand as the economy grows so more jobs can be created, decreasing unemployment. Those against tax reduction believe tax cuts will lead to greater budget deficits that will eventually crumble the economy. The tax cuts will reduce the amount of money that funds defense, Social Security, Medicare and education. Arguers against reducing taxes believe that tax cuts cause bigger problems for American children.
Liberals would argue that tax cuts do not help the economy, especially in a recession. On the contrary, as Conservatives would believe, tax cuts can help an economy in the dumps. Here is a scenario, if taxes were cut 10% across the board, workers would gain 10% more of their wages to spend. This money would stimulate other businesses. As businesses begin to prosper, they will be able to dish out more money to their workers in wage increases. And, like a cycle, workers will have more money to spend to stimulate the economy. Here's the best part, because workers are gaining more in wages due to tax cuts, the government will gain tax revenues greater than or equal to tax revenues before the tax cut. Also, unemployment will decrease and  the government can gain more tax revenue. If the government is still spending too much money, than another tax cut can be imposed. If this trend were to continue there would be a rapid decline in the national deficit. Economist Milton Friedman is conservative and promotes tax cuts. In and interview between Milton Friedman and Peter Robinson, Friedman explains that tax cuts will give consumers more power to decide how to spend their money. Also, the government will not have high budget deficits if they don't have much money to spend.



Issue #2 - http://emilyewblog.blogspot.com/2011/02/issue-2-offshore-outsourcing.html
Issue #3 - http://ksteffss1.blogspot.com/2011/02/budget-deficit-and-social-security.html