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Tax Breaks aren't bad, and I would never turn them down. But to think that tax breaks will single-handedly stimulate the economy is laughable. Remember last fall? Those stimulus checks didn’t fix the problem, so what makes us think it’s going to fix everything this time?
There are ways of cutting taxes that will stimulate the economy. Reducing capital gains and reducing taxes on small business are two of the possible ways.
What will have no effect (or very limited effect) is giving individuals $10 to $20 more per week in their paycheck, especially if they pay no taxes to begin with, as with many of the people who got the so-called "rebate" checks last year. People will most likely pay down debt or save the money, both laudable actions, but not stimulus for the economy.
I definitely agree with that idea. Make it something like the first 10,000 of income has a tax rate of 0%.
I agree with with a lot of the other points made in this thread.
If anything I believe we can all agree that government spending is a lot less effective compared to the private sector.
I would take the median single family house price and divide it by 3. That would be the income you could make and pay no tax. Income taxes should be phased out, but definately stop taxing those who can afford it the least. The trick is how to cut government spending.
There are ways of cutting taxes that will stimulate the economy. Reducing capital gains and reducing taxes on small business are two of the possible ways.
What will have no effect (or very limited effect) is giving individuals $10 to $20 more per week in their paycheck, especially if they pay no taxes to begin with, as with many of the people who got the so-called "rebate" checks last year. People will most likely pay down debt or save the money, both laudable actions, but not stimulus for the economy.
Tax cut stands out like a sore thumb to me, and it accounts for 30% of the package! Fixing this economy with tax cuts is like treating a broken leg with chicken soup. Some temporary tax cuts may help, but only in a secondary role.
Businesses are not going to hire people if the goods and services they offer continues to shrink. They don't hire for the sake of it. Now, capital gains tax cuts etc may help once the economy has been stimulated and some stability has been achieved, and consumer confidence is restored. Otherwise, giving more money to businesses would be no different than what came out of TARP, where banks started to hoard money, spend it in more profitable markets, or use it towards mergers (if not big bonus checks).
I work for a public school system here in NC and I couldn't agree with you more. We'll waste millions for one program in one department without even blinking an eye! People that screw our budget up beyond belief wind up getting promoted, when smart business like minded induviduals keep on getting laid off in the private sector. Everything you've ever heard about state/federal government is all true!
I work for a public school system here in NC and I couldn't agree with you more. We'll waste millions for one program in one department without even blinking an eye! People that screw our budget up beyond belief wind up getting promoted, when smart business like minded induviduals keep on getting laid off in the private sector. Everything you've ever heard about state/federal government is all true!
Well, when there is less accountability, the result is obvious. This is true in both, private sector and government. The foundation of capitalism is based on trust. The kind of trust one could have in a Dad-Mom small business where they actually took smart decision to ensure the health of their business and its future, not just in themselves.
This changes drastically when we think of corporations. The top management couldn't care less about the company but themselves. They can always "move on". A great example is the story of the guy whose "baby bank" grew to be the giant it is today, and now with contrasting philosophies it was originally founded with. This guy, actually gave up half of his wealth to a foundation to avoid becoming a millionaire. Now, the people running his bank don't mind spending thousands for a trash can. The story.
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