After Barack Obama won the election Rush Limbaugh gave him some advice on the economy. OK, actually Rush gave Obama a proposal which Obama ignored. Limbaugh said that we should cut the Capital Gains tax to zero for a period of time and cut the corporate income tax in half. Limbaugh also said that cutting those taxes would put more money in the pockets of Americans and businesses would have more money to hire and expand. Of course this was ignored by Democrats even though cutting taxes always increases revenue to the Treasury and stimulates the economy.
I know a number of liberals who do not believe we should cut taxes. In fact, many of them say we should pay more taxes (somehow liberals always want more taxes but find ways not to pay them – see Obama administration for examples).
It looks like Barack Obama has finally taken some of Rush Limbaugh’s advice. Obama, in an effort to stimulate job growth, is pushing to eliminate the Capital Gains tax on small business for a one year period. The cut should be more and include many others but this is a good first step.
A major part of his package is new incentives for small businesses, which account for two-thirds of the nation’s work force. He proposed a new tax cut for small businesses that hire in 2010 and an elimination for one year of the capital gains tax on profits from small-business investments. Breitbart
Obama wants to cut taxes to zero for one year in order to stimulate job growth. Listen up liberals, your leader has just told you that cutting taxes stimulates job growth.
This is not the first time a Democrat has mentioned cutting a tax to stimulate the economy or stimulate job growth and each time they say it they are admitting that conservatives especially Mr. Limbaugh are right. Saying it is one thing and doing it is another and they seldom carry through with the plan but they do admit, probably unknowingly, that the conservatives are correct.
This economy would be on the mend in a big way had Obama listened to Limbaugh in the first place. Cutting Capital Gains taxes to zero for a year would cause a massive influx of money into the economy where people would spend it. Cutting the corporate tax in half would leave companies with a lot of money to expand and hire.
And the government would get its cut because people who have more money buy things that are taxed. People who get a job pay taxes and the revenue to the Treasury would skyrocket.
I know Obama is only talking about cutting the tax for small businesses but that is better than the path he has been on.
It would have been better if he took all of Limbaugh’s advice but baby steps, a little at a time and we will get there. Once the economy picks up Obama will take the credit but he will have shown that tax cuts are a good thing.
If Obama can cut the Capital Gains taxes on small business the job numbers should improve and the economy should start to improve. But that won’t do it all.
So, here is the piece Limbaugh wrote so Obama won’t have to search around. Read it Barry and follow all of it.
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