emocrats believe the federal government should be the first choice in looking for help. The differences can be explained as: teaching a man to fish versus giving a man a fish. These differences are clearly seen in policies involving tax cuts. Republicans prefer tax cuts to spending and usually push for higher tax cuts involving businesses. Democrats prefer to spend tax revenues on social welfare programs, and while they do believe tax cuts are important, they prefer to lower the taxes on those individuals in greater need and usually push for higher taxes to be paid by the wealthy.Providing for a vibrant and growing economy involves creating the need for jobs. In order to accomplish this, Republicans want to keep the capital gains tax low. Capital gains tax is the tax one pays upon selling, for profit, something one owns. Capital gains mostly affects those who have saving to invest in stocks, land or some sort of business, usually the wealthy. Capital investments fuel industry and create jobs. In 1969, the capital gains tax doubled. In 1970, there were 31 million investors putting up capital to increase production and create jobs. In 1978, there were fewer than 25 million. In 1998, President Clinton proposed a balanced federal budget, which included new spending for teachers, a deficit-neutral expansion of the Medicare program, and childcare. Republicans preferred a broad tax cut, however, the Clinton Administration did not favor large tax cuts. Clinton wanted to reserve anticipated federal budget surplus and was hoping to prevent the money from being spent on tax cuts favored by many Republicans. The Republicans and Democrats find themselves at odds once again with President Bushs plan for a tax cut. Though both parties agree on a significant reduction in at least individual income tax rates, fights looms over the size of the tax cut and whether the wealthy will end up with most of the savings. The Democrats feel Presid...
