How long do the benefits of a tax cut last?

Question

Some economist say tax cuts rev the economy. Although there is evidence to prove they only help a little bit. (Think of the crash 2000-2002 being dot com and 9/11, much credit it contributed to tax cuts, however, many feel the economy would grow no matter, but thats a different subject)

If this is true, how long do tax cuts help the economy until it hits equalibrium again and we hit a recession?

So far, I just received 5 fantastic answers.

Thanks.

Answer 1

I beleive it was the new line of gold colored rims that were introduced then..Who cares..Vote 4 me $$$$$.

Answer 2

As long as the tax cuts are in effect people have more money to spend and businesses can earn more and hire more.Tax burdens on small to medium size businesses make it more affordable to either lay off or cut production to ovoid a higher tax bracket that can devastate your profits for the year.
Tax cuts give incentive to earn more and even at a lowered rate generate more revenue.It works just like Wal-Mart small profits on individual items but huge volumes.

Answer 3

They don't at all. Those are just tatics. If you want to revive the economy, all you have to do is increase consumer confidence. Tax Cuts are just a known way to make it look like they are doing something. They are actually a very tiny amount of money, that has little effect itself.

Answer 4

Bush bought the American Public for 300 a piece. How long did that last? He got 4 years out of it.

Answer 5

Till the democrats get back in power and decide you don''t need it anymore, which will be so quick your head will spin!

Answer 6

As long as the cost of living does not overwhelm them

Answer 7

get a job and find out for yourself

Answer 8

Til they find another way to screw you!

Answer 9

As long as a republican administration remains in power!!!!!!!!!!!!