ASU2003

I know I didn't get any money back since I was in school back then, but has any economists looked into the effect giving tax cuts using borrowed money actually has long term?

While I would say it does help the economy, either people pay off their debts or may choose to buy something they may not have. Did it cause enough stimulus to the economy to generate taxes equal to the stimulus. You have Sales tax going to help the state budgets, income taxes from the workers making the products going to the government, investments in wall street or expanding businesses by the rich (which are taxed when shareholders take profits), and it all sounds great. However, if the tax cuts are greater than the revenue it generated for the government, then we are paying interest on those tax cuts now year after year. I could also ask if this was an artificial action by the government meddling with the free market. Where would we be if the Bush tax cuts failed to pass? The economy for me wasn't that great in 2003-2004, yet my life wouldn't be impacted very much if I had to pay higher taxes now.

I know this will get political, and I was debating putting it over in the Politics area. But, I am trying to look at the numbers and see if we can learn from the past. If someone else would like to make one over there to look into the games they are playing now, feel free. You can ask if there are other taxes that should be lowered or eliminated instead of these tax cuts. And is Obama going to say that the $1 trillion deficit (that may be reduced by paybacks), could have been less if the upper tax cuts expired ($700 billion/10 years I have heard estimated I think).