OK...forget about the rich vs. the poor thing.
And the taxes applied to them, these are the extremes of the curve.
Let's take the typical consumer, at the top of the curve.
Say a single person making 40,000 year.
What is the difference between what they gave in taxes before Bush's cut,
and after they went into effect.
And how much could they spend of it, especially distributed through paychecks in the year,
which is where it's usually taken from.
An official study of the tax laws passed by Federal government.
http://www.thememoryhole.org/crs/RL31907.pdf
Page 8, lists the actual change inacted in the final bill.
Page 11, analyzes the Economic Stimulus & Growth Effects, and opinion
Page 14, analyzes the Distributional Effect, and opinon
On page 16 is the first chart of the rates, and their differences.
All of this is very interesting to review.
However, taking the example given above
A $40,000 income...taxes will be reduced on average approx. 3,856 over the year. (-4.3%)
Divide this into say 24 paychecks (most are getting paid twice monthly these days)
That's an extra $160.60 not taken from your paycheck.
An overall increase of after-tax income of only 2.1 %
Nice,
But does that necessarily help stimulate the economy?
Most experts say no, it's impact is minimal
including this report, done by the government itself.
To get back to the original topics point...
I doubt the monies that were saved on incomes directly impacted factory stats.
It's the fact the company outlook & economy overall is improving
after recovering from its overindulgence in the past years.
Damn...that was fun.
