Quote:
Originally posted by XXXs
One way to quickly kill the economy is to raise taxes, which is what "repealing" the tax cuts would be. Another way would be to increase spending, which is what the democratic candidates universal health care ideas would do.
|
Well, no one responded to my proposals.
Once the tax cuts go through (these ones, anyway) there is no guarantee that the money will be reinvested in our economy. In fact, in a global economy one could expect the opposite to occur. Even if people reinvest their new money it won't go into their local economy--it will be sent to Wall Street and seek the lowest price for the highest return.
The money will definately be dispersed throughout the market--no one disputes that. Others only _hope_ the best return will occur here--tax cuts can't force domestic investment.
Credits and rebates, however, would force domestic investment. Build a factory--tax free. Hire three new workers--tax free for X amount of time. Need a business--money available through low interest (2-3%) and tax free.
How is a program along these lines worse than just giving people their money back? The people who are going to invest will still receive the money they would have gotten under the blanket cuts while the others don't. Even libertarians believe the government's role should be relegated to economic concerns. Allowing the economy to tank is no good for anyone.
While it's true that economies are cyclical it's also true that a free market economy can sit at the bottom forever as well as remain at the top--just like we witnessed during the depression.