Do tax cuts really help the economy? Or just let those who have wealth grow and keep more?

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djNickb

Senior member
Oct 16, 2003
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CkG,

If I called the tax cut a financial opportunity rather than a gift would you have responded differently?

If most people saw the tax cut this way and invested the extra they kept wouldnt that have a more beneficial effect on the economy?
 

CADsortaGUY

Lifer
Oct 19, 2001
25,162
1
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www.ShawCAD.com
Originally posted by: djNickb
CkG,

If I called the tax cut a financial opportunity rather than a gift would you have responded differently?
Possibly - depending on the phrase's context. You see - every time you possess money you have financial opportunity...taking less of your opportunity(via taxes) is not a gift by/from the gov't;)

CkG
 

djNickb

Senior member
Oct 16, 2003
529
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Originally posted by: CADkindaGUY
Originally posted by: djNickb
CkG,

If I called the tax cut a financial opportunity rather than a gift would you have responded differently?
Possibly - depending on the phrase's context. You see - every time you possess money you have financial opportunity...taking less of your opportunity(via taxes) is not a gift by/from the gov't;)

CkG
But, if I realized more of my work income because of the tax cut and used it to create an asset (an asset to me is something that puts money in your pocket) I would benefit from that asset many times over.
 

CADsortaGUY

Lifer
Oct 19, 2001
25,162
1
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www.ShawCAD.com
Originally posted by: LunarRay
Originally posted by: CADkindaGUY
Originally posted by: LunarRay
Sure, tax cuts and increase government spending (sorta the same thing cept we don't buy $40 pencils) help the economy if it is directed to the folks who'll do the spending.. the middle class.. the lower class get CADDY FREE... (No pay refunds).

But,!!! here is a link (click on the graph) that (so you can read it :)) shows by income level who got what.. Look at that big blue bar to the right... hmmmmm
Nice try Luny...would you like to post a similar graph about which income groups pay the most income taxes and other taxes that are affected by these tax-cuts? Hmm....didn't think so;)

CkG
Are you hearing things Caddy? :)
Of course the folks who make more pay more, at least last time I looked. In fact, as you know, many of the tax deductions are phased out for the rich folks. I don't disagree with pure math.. :)
BUT!!!! The interesting thing about the graph is that the middle class get so little individually and all I kept hearing is 'what will you do with your tax cut' not much in it for them.. (you).
MY issue is and always has been the 'multiplyer'. I believe the dollars given to the folks making over... say 200K$ will not create the same multiplyer as you might. For that reason the tax cut (refund) may could have been better directed. (May coulda)! I've been wasting my pencil lead trying to figure out the 'real' affect and not the talking head version on TV or running for office and I think I might amend my thinking to a more favorable or less misdirected but somewhat misdirected tax cut. Not got all my 'i's dotted yet.. but, it is looking that way.
Sure I'd like to see the "middle class" be able to use more of their money instead of having the gov't "filter"(pilfer;) ) it. That link I PM'd you should help a tad even though I don't think it uses figures from what was actually passed and signed into law(but it's probably pretty close I hope...although they did cut out some things and sliced the tax-cut package up;)) Anyway - you'll see the AGI groupings and the change...and then the proposed rate averages by AGI. In every single case that average rate went down(except for those under 10K AGI - who don't pay net income taxes anyway.)

I'd like to see if that source you linked did infact use what was passed as legilation or if it was based off the proposals...the answer would be helpful for context...but I think I know what it is:D

CkG
 

LunarRay

Diamond Member
Mar 2, 2003
9,993
1
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Cad,
I think it is also on Brookings' site.
I'll look as soon as I get back from Costco... Von's, Ralph's and Albertson's are being struck so I've to drive a bit to buy some food.. :D



 

CADsortaGUY

Lifer
Oct 19, 2001
25,162
1
76
www.ShawCAD.com
Originally posted by: djNickb
Originally posted by: CADkindaGUY
Originally posted by: djNickb
CkG,

If I called the tax cut a financial opportunity rather than a gift would you have responded differently?
Possibly - depending on the phrase's context. You see - every time you possess money you have financial opportunity...taking less of your opportunity(via taxes) is not a gift by/from the gov't;)

CkG
But, if I realized more of my work income because of the tax cut and used it to create an asset (an asset to me is something that puts money in your pocket) I would benefit from that asset many times over.
Yes, and?
You benefitted individually - great, but so did the economy - no? Would the economy not have benefitted also if you'd have gone and bought a TV? Car? etc? Sure you only see that money once instead of seeing it time and time again but the economy still sees a benefit from a one time purchase. Would I like to see it be used wisely? - sure because then more and more people could see that money over and over again instead of just once...but that's not how people work. Allowing them to keep more of their money doesn't change that but neither does the gov't taking more and more of it either;)

CkG
 

dirtboy

Diamond Member
Oct 9, 1999
6,745
1
81
Originally posted by: djNickb
But, if I realized more of my work income because of the tax cut and used it to create an asset (an asset to me is something that puts money in your pocket) I would benefit from that asset many times over.
There are many assests that one can purchase that benefit the purchaser and help the economy. I'd have to spend alot of time thinking to find some that don't benefit the economy in one way or another.
 

rjain

Golden Member
May 1, 2003
1,475
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dirtboy: by definition, the economy is measured in the dollar value of all purchases made. Therefore, any purchase must necessarily add to the economy. So yeah. And if the sale would not be beneficial to the seller, then he's a dolt and deserves to suffer. ;)
 

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