0
Tax cuts can be a good thing or a bad thing depending on what you are trying to accomplish and the state of the economy at the time. If you have an economy like we do today you would want to deficit spend which means cutting taxes ( at least for the lower, and middles class), and increasing government spending by providing government aid through programs such as health care and education.
If you give the lower and middle class tax cuts you are putting more money in their pockets. This is known as income, and it is a key factor in consumption. Since these people now have more income they will be able to buy certain things they could not before. Therefore increasing GDP (Gross Domestic Product) which promotes a better economy.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is demand-side economics?
the idea that government spending and tax cuts help an economy by raising demand
What is demand side economic?
the idea that government spending and tax cuts help an economy by raising demand
What effect did ford's economic policy have the economy?
President Ford's economic policy had a negative effect on the economy. He first called for tax increases then for tax cuts which sent the country into a recession.
What is a sentence for Economy?
In today life, the economy is bad because some people don't have jobs or any money to survive their surroundings and their bills.The word economy is a noun. A sentence for economy is, 'They argued about whether or not tax cuts were good for the overall economy.'
Which party believes tax cuts for all levels of society will increase consumer spending and lead to growth in America's economy?
The Republicans
Why does the President Obama believe that Tax Cuts are critical to help revive the economy?
Tax cuts mean more money to be spent. More money being spent means more money movement in the economy. A higher money movement is inherent in a strong economy, and often necessary.
Do tax cuts worsen the economy?
No..they actually stimulate the economy by freeing money for investment
What is President Obama unwilling to change his mind about?
Health care. Keeping Bush tax cuts. Tax cuts increase revenue to the government and stimulate the economy.
What did President John F. Kennedy advocate in order to stimulate economy?
Tax cuts
How does tax cuts help economy?
the less tax we have to pay the more money we will have so we tend to spend more which helps our buisnesses grow which keeps our economy going
Ronald Reagan anf the tax cuts?
President Ronald Reagan applied supply side economics when he executed tax cuts. This created a favorable environment for economic growth, and the revenue generated by a vibrant economy would offset the revenue lost via tax cuts.
What is demand-side economics?
the idea that government spending and tax cuts help an economy by raising demand
What did President John F. Kennedy advocated in order to stimulate the economy?
Tax cuts
What is demand side economic?
the idea that government spending and tax cuts help an economy by raising demand
What effect did ford's economic policy have the economy?
President Ford's economic policy had a negative effect on the economy. He first called for tax increases then for tax cuts which sent the country into a recession.
What is a sentence for Economy?
In today life, the economy is bad because some people don't have jobs or any money to survive their surroundings and their bills.The word economy is a noun. A sentence for economy is, 'They argued about whether or not tax cuts were good for the overall economy.'
Are tax cuts available for new business owners?
Tax cuts are available to new and old business owners. To find out exactly what cuts you are entitled to I would need more information. A good website with great information is http://money.cnn.com/2010/09/07/news/economy/obama_business_tax_cut/index.htm.
