Unlike you people, I am not well educated in Economics, but Dan Mitchell {Senior Fellow in Political Economy at the Heritage Foundation} comments on these show, just strikes me as a flawed argument:
DAN MITCHELL: Well, I agree that if you have a tax cut, it's not going to benefit people who don't earn enough income to pay taxes. That's why I thought the Tax Policy Center study was about as remarkable as saying the sun rises in the east and sets in the west. If you don't pay taxes, when there is a tax cut, you're not going to be among the beneficiaries. The problems we have in Louisiana and Mississippi and other low income communities around the world, is we have generations of poverty that have been subsidized by a $6 trillion war on poverty that has massively failed, because we have, in effect, destroyed the family by having the government come in and play mommy and daddy. Those are the problems we need to deal with. We need to deal with them through things like school choice, where you can help people break out of poverty. But these are the very things that the left are viciously fighting, because they put the interest of teachers unions ahead of the interest of black children.
DAN MITCHELL: How do you give a tax cut to people who don't pay taxes? That's income redistribution. Do you want to make America more like France with double-digit unemployment and economic stagnation?
DAN MITCHELL: I still come back to the first thing I said. If we have a tax cut, the child tax credit, how are you going to give that to people who don't earn enough income to pay taxes? In effect, what's being said here is that we should turn a tax credit into a form of income redistribution, and that is making America more like France or some of the high tax European welfare states that have such economic misery and double-digit unemployment. We don't want to go down that road. We want opportunity, we want job creation, we want better economic performance, and those aren't the things you get through income redistribution. We have had $6 trillion on the war on poverty, and it's created the problems in New Orleans. It doesn't solve them. Government is the problem, not the answer.
DAN MITCHELL: Well, what you're really saying is, you want to turn the tax credit into just a form of government payment to everybody, which would be a form of income redistribution. And, again, I come back to: Show me any country in the world that has ever prospered and grown and created economic opportunity by having higher taxes and more redistribution. That entire model has collapsed in the former Soviet bloc. That entire model is responsible for the economic stagnation of Western Europe. We want free markets and individual responsibility and individual opportunity here in America. I don't want to go down the route of countries that have failed because they pursued too much income redistribution.