Mr. Shaman
Well-Known Member
- Joined
- Nov 27, 2007
- Messages
- 7,829
"When the Obama administration takes office in January, it will propose a fiscal stimulus consisting of increased government spending and lower taxes.
By all accounts, the package will be big -- at least $700 billion, and possibly $1 trillion, over two years.
The goal will be to end or moderate the recession. According to the textbooks, government spending raises the demand for goods and services. Tax cuts also spur demand by putting more income in the hands of consumers or more after-tax profits in the hands of businesses
Consider instead using tax cuts to stimulate the economy. Most tax cuts enhance economic efficiency by giving the private sector better incentives. Reductions in the corporate income tax, for example, increase the incentives for investment, while reductions in personal income taxes raise the incentives for work and saving."
I guess this dude's been in a coma, since Lil' Dumbya Pre-War Tax-Cuts.
