Are tax cuts good for our economy? why or why not?

Answer 1

Yes, they are great for the economy. Tax cuts allow money to stay with in the private economy where Tax money is really pulled out of it and tied up in Government controlled ventures. Government controlled ventures have no real influences on the productivity of private industry, which is where money grows.

The more availability of resources, the more money is spent in areas that money wasn't spent in before, providing greater opportunity and resources for companies to expand and develop, not to mention provide new job opportunities. They don't do that if they aren't pulling in the resources to allow for it to happen.

So, the long and short of it, it's been proposed and done under Kennedy, Reagan, and now Bush. It's how you can let the people have the resources to do with as they deem necessary. And because the people of the United States are amazing in their ability to grow and expand, it works like a charm every time.

Answer 2

Tax cuts really have very little effect on the economy. There have been recessions that we got out of with tax cuts, there have been recessions that we got out of without them. If the government cuts taxes, the only difference is that instead of the government spending that dollar, you do. And while that's good for YOU, it's no better for the overall economy than if it was spent by the government: it still gets spent.

Nonetheless, I'm totally for tax cuts IF they come with matching spending cuts. I am totally AGAINST tax cuts that put us into deficit. I don't see why my children and grandchildren (or yours) should have to pay for our current economic prosperity. I would have no problem with Bush's tax cuts if they had not caused the national debt to double.

And before any of you start waxing philosophical about how tax cuts cause a revenue increase, that's totally untrue. The Bush tax cuts in 2002/3 caused an 18% drop in federal revenues, from which we have still not fully recovered if you measure it in inflation-adjusted dollars. And current revenue, while it is CLOSE to getting back to where it was in 2000, is nowhere near where it would have been had there been no tax cuts.

Answer 3

Yes.

Because when you talk about the dollar, you don't really mean the total number of dollars in the country. You mean the total number of dollars that change hands. If I have more money, I can spend more. More dollars come into my hands...more dollars go into the stores hands...more money goes to wages and commissions. That one dollar is effectively at least 3. This has a snowball effect.

The Great Depression was not caused by dollars spontaneously combusting. People stopped spending the dollars they had because of the fear of what tomorrow would bring. People stopped spending and the economy slowed to a crawl.

Answer 4

Tax cuts always sound great, but if the government continues to spend, the bills have to be paid. I wish it was a requirement that the federal budget had to be in balance each year. It is required in states, cities and towns, so why not Federally?
I know emergency's come up, but the other state governments seem to find a way. If we had to balance the budget, the President would not go to way unnecessarily like Iraq.

Answer 5

They are good. People with 401K's have to pay less tax and when the evil rich get more of their money back they buy things .This in turn creates jobs for the rest of us.