Democrats on Taxes: What’s the Difference? We often boil down the tax policy of our major political parties to its simplest form: Democrats raise forex marginal to fund social programs, and Republicans lower taxes to benefit big businesses and the wealthy.
Both ideas oversimplify the policy of each party, yet both ideas are essentially true. Whether you agree with more government spending or tax breaks for corporations, each party’s agenda will affect your taxes. We believe government should tax only to raise money for its essential functions,” the Republicans state their case plainly on the Republican National Convention website. Republicans believe Americans deserve to keep more of their own money to save and invest for the future, and low tax policies help drive a strong and healthy economy.
Tax relief is the Republican route to growing the economy. A Republican government would reduce taxes for businesses to allow them to grow and presumably hire more employees. Republicans also seek to limit income taxes for individuals so that people can hold on to more disposable income, which they can then spend, save, or invest. The tax policy for the Democratic Party calls for raising certain taxes to provide money for government spending, which in turn generates business. The party platform asserts that government spending provides “good jobs and will help the economy today. Many Democrats are adherents to Keynesian economics, or aggregate demand, which holds that when the government funds programs, those programs pump new money into the economy.