pretty simple,as most things are until people overcomplicate them for various reasons. and while this is simple it is accurate. occum loves sme.
bush's "tax cut for the rich" was a tax cut for YOU in 2 ways.
first off the obvious people got a bigger tax break, so they got some more money back. usually around 400 bucks.
second, many businesses and corporations got a tax break as well, so how was this a tax break for you?
well because in the real world the consumer always carries the bottom line, any increase in cost of operation is passed to the consumer. examples:
when the tax on flour goes up, so does tortilla prices. so your burrito costs more along with everything else made of flour, plus flour at the grocery store
decreases in business operations(such as a tax cut) usually lead to a decrease in prices in a free market economy(where competition forces the decreases).
example: taxes on flour are lowered, 3 tortilla companies are all affected, company A lowers it's prices to attract more consumers. companies B and C eventually do the same to remain competitive.
what happened? well by giving the consumer a direct tax break, he had more money to spend by giving businesses a tax break that lowered prices, not only did the consumer have more money to spend the products he had to spend it on in many cases cost less at the same time.
some people say 300-400 bucks is not much money..well, if they can take this kind of attitude about that much money ,they must already be doing pretty well for themselves. in my neighborhood 400 bucks buys alot of stuff. like a nice computer upgrade!
bush's "tax cut for the rich" was a tax cut for YOU in 2 ways.
first off the obvious people got a bigger tax break, so they got some more money back. usually around 400 bucks.
second, many businesses and corporations got a tax break as well, so how was this a tax break for you?
well because in the real world the consumer always carries the bottom line, any increase in cost of operation is passed to the consumer. examples:
when the tax on flour goes up, so does tortilla prices. so your burrito costs more along with everything else made of flour, plus flour at the grocery store
decreases in business operations(such as a tax cut) usually lead to a decrease in prices in a free market economy(where competition forces the decreases).
example: taxes on flour are lowered, 3 tortilla companies are all affected, company A lowers it's prices to attract more consumers. companies B and C eventually do the same to remain competitive.
what happened? well by giving the consumer a direct tax break, he had more money to spend by giving businesses a tax break that lowered prices, not only did the consumer have more money to spend the products he had to spend it on in many cases cost less at the same time.
some people say 300-400 bucks is not much money..well, if they can take this kind of attitude about that much money ,they must already be doing pretty well for themselves. in my neighborhood 400 bucks buys alot of stuff. like a nice computer upgrade!