Tax Cuts, Yes; But Which Way? – American Intelligence Test #13

Tax cuts are all the rage and evidently the salvation of pretty much everything. There isn’t a politician who doesn’t want to provide tax cuts for their constituents, or at least their contributors. Now there are two very important reasons that the idea of tax cuts are so attractive and perhaps even addictive. First who doesn’t think they would be better off if they paid less taxes; and second, tax cuts promise an absolutely simple means for fixing everything. Thus it should be no problem for everyone to answer a few simple questions. After all, the common sense of tax cuts by their very common sense nature cannot be difficult to explain.

So answer the questions that follow and confirm the common sense of your understanding. Your score is your responsibility to assess. And the act of deceiving yourself is no different than having a politician deceive you. Of course non-deception is a positive measure of your intelligence, so you are always making a trade-off. To paraphrase Lincoln:

Some of us can fool ourselves all of the time, and all of us can fool ourselves some of the time, but all of us can not fool ourselves all of the time.

Perhaps the last clause is what worries politicians the most. Prepare yourself; the opportunity to believe the politicians is at hand.

Question 1:   Let’s start easy. Tax cuts create jobs.

Yes    No    M-Maybe   U-Unpredictable   
Context:  If yes then jobs would have always increased when taxes were lower, and jobs decreased when taxes were lower. And history demonstrates this.

Question 2:  Tax credits or deductions are just another form of a tax cut.

True    False
Context: Home mortgage deductions are a tax cut?

Question 3:  Tax cuts will improve America’s financial situation.

Yes    No    I-Indeterminate
Context: With more money to spend, American’s are assured that American businesses will prosper.

Question 4:   If tax cuts for the wealthy are the only way to create jobs then there is no benefit to cutting the taxes of the middle-class.

True    False
Context: Investments by the wealthy will create jobs, concentrate more wealth and create more jobs.

Question 5:   Tax cuts would rank where in effectiveness for improving the American economy compared to the following. Answer with letters of any item(s) that are more effective.   Answer :  ___

A.      Reduced Government spending

B.      Reducing Military spending

C.      Reducing spending on Social Security

D.      Reducing spending on Medicare & Medicaid

E.       Reducing the National Debt

F.       Reducing regulation

G.     Taxing political contributions

H.      Elect politicians who are smart enough to know their skills and knowledge are not capable of solving our problems

I.        Revise tax code to tax everyone at the same rate

J.        If none are, use J to answer Tax cuts are the most effective measure

Your answers can be compared to the correct ones below.

1:  U       2:  F        3:  I         4:  T        5: E, G, H, B, D, C, F, A    

If you didn’t match the above answers, don’t worry. You can put your faith in the magical power of tax cuts, just as you are probably putting your faith in politicians being the folks who can save us, preserve our liberties, and restore America to its values and principles. But tax cuts are not guaranteed to create jobs, tax cuts are not a magic bullet to fix our economy nor a remedy for all the foolish and irresponsible actions by our politicians and ourselves.

To address America’s problems the solutions need to be very specific to the realities of the world and our society. Solutions must be based on approaches that apply fiscal, tax, economic, and social forces that are have a direct cause-effect relationship to the equation. Fixing America requires new ideas on how to run our social and national policies, programs and institutions. If you think tax cuts are a directional  force then you probably also think that a vision to restore America to its founding values and principles actually means anything.