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Are tax cuts ever a sound economic plan?

Let's say for family gross income of 250K+.

Facts:

Income tax rate cuts ALWAYS increase revenue to the treasury.

Congress is the source of overspending it.

Earners of 250K+ create jobs by hiring people in small business, the

largest sector of employed people. With more capital(cash) wages can also be higher than if that capital is taxed. You either pay taxes or wages, or buy more capital.

Cutting capital gains tax rates increases capital purchases including

business equipment, structure. Jobs are required to manufacture and service this capital.

Cutting capital gains tax rates also allows EVERYONE'S 401K to increase in value, even if you only make 20K and are in a plan.

So, what's the problem in cutting these taxes? Everybody wins!

Update:

grump56: what happened was the Congress spending it. Happened with JFK, Reagan, and Bush.

This has NOTHING to do with Bush, it has everything to do with Congress, and those that keep voting 'Tax and Spenders', (R) or (D)

11 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    I'm no economist but ,tax cuts sound like a better idea than subsidizing San Fransisco field mice, dog parks, keeping bums in homes they can't afford, Frisbee golf courses,global warming study( AlGore already knows it all),bailing out the UAW....

  • Anonymous
    1 decade ago

    I would really like to see the sources for your "facts". They sound like typical trickle-down Reaganomics assumptions.

    Also, I find it difficult to believe that most people making 20K even have 401k's.

    Also also, congressional spending also creates jobs. Congress doesn't just assign the money and then burn it. Congressional spending allows congress to target the sectors for job growth.

    Tax cuts typically come at the expense of the poor, since they pay the least in taxes already. You also make bold assumptions that the wealthy prefer passing down wealth.

  • 1 decade ago

    If you cut income tax there will be less revenue unlike business tax and those businesses employ more who in turn will have to pay income tax. As far as 401k I believe individuals should have an option as where their money can be invested instead of in the same company they are working for. Companies who went belly up took with them the 401k of their employees.

  • Anonymous
    1 decade ago

    Income tax rate cuts always increases revenue to the treasury? Stop right there!

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  • Anonymous
    5 years ago

    How the bleep is it what the Republicans choose??? Who became in fee of the abode and Senate until at last this final election? The Republicans handed a sane budget and your perfect pal grimy Harry Reid and his Comrades stated it became ineffective on arrival? How approximately shoving OBAMA CARE down our throats even nevertheless we did no longer like it? How with reference to the main important boost of discretionary spending in lots of many years? in case you declare to be a Psych. you have gotten taken some too lots of your guy or woman meds. bypass into the actual international and attempt to make a residing, get removed from the lecture room you blithering QUACK!

  • 1 decade ago

    It's a nice theory.

    In reality, they just keep the extra money for themselves and don't re-invest it within the company.

    Greed is human nature.

    And...

    If the reality of it played out like it did in theory, Bush's tax cuts would have helped the economy and not hurt it.

  • Anonymous
    1 decade ago

    The data is clear.

    When taxes are cut both the government and the nation at large benefits.

    There is abosolutely no evidence to the contrary.

  • 1 decade ago

    So by your formula, Bush's tax cuts should have balanced the budget, the economy should be strong and unemployment should be very low. So, tell me. What happened?

  • 1 decade ago

    they are if you accompany them with spending cuts.

    that's the idea at least. it's a solid idea.

    the problem with bush is, he lowered taxes, and then raised spending, you can't have both.

    that's the problem with swarzzneger too.

  • 1 decade ago

    Not everybody. It would create jobs which means liberals would have to actually work for a living.

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