what does TAX CUT means?

Answer 1

Big fancy words that Republicans use to let you know that instead of the government taking money directly from you (applies mostly to wealthy people who pay taxes), they will be debting the money from the budget. This effect makes the U.S. dollar decrease in value and gives you less buying power in the world. So in essence you may have a few extra hundred bucks in your pocket, but you won't be able to buy anything with it. Tax cuts are only officially effective when the budget is balanced and the debt eliminated. This is not the case and it's getting worse in our country, so I don't know why these bozos keep talking about tax cuts. Who are they really helping?

Answer 2

A tax cut is a reduction in the rate of tax charged by a government, for example on personal or corporate income. Whether a given tax cut will increase or decrease total tax revenues is much discussed by both economists and politicians.

The immediate effects of a tax cut are, generally, a decrease in the real income of the government and an increase in the real income of those whose tax rate has been lowered. In the longer term, however, the effect on government income may be reversed, depending on the response that tax-payers make. Depending on the original tax rate, tax cuts may provide individuals and corporations with an incentive for investments which stimulate so much economic activity that even at the lower rate more net tax revenue will be collected.