Bobby Scott: “It is absolutely incredible that we could run all this red ink without creating jobs. At least when President Reagan was…”

“It is absolutely incredible that we could run all this red ink without creating jobs. At least when President Reagan was running up deficits he was creating jobs. It is difficult to cut taxes the way the administration has cut taxes, in those amounts, without creating some jobs. But the taxes they cut were the kinds of taxes that did not stimulate the economy. It only rewarded those in the very upper income, the ones least likely to actually spend it. If you want to stimulate the economy, give the money to those who will actually spend it. People who had jobs, who lost a job and are continuing to look for a job but have not found one yet, their unemployment benefits have run out. If you give them some money, they will spend it right away. If you give a cut on dividends to someone who has substantial stock holdings already, if you cut tax and dividends in half and someone benefits $300, if you do the arithmetic they must have had, on average, $100,000 in stock. The $300 tax cut does not stimulate the economy.”