Thursday, December 9, 2010
What’s Wrong With Cutting Taxes?
The proposed tax cuts are argued to help stimulate the economy, create jobs and hopefully lead to economic recovery. the author of the article states that cutting taxes for the very rich is a very ineffective way to stimulate the economy. some people believe there are better actions that could be made. three more effective ways to support consumer demand and jobs would be to extend unemployment benefits, don't lay off teachers anywhere and start hiring more people.
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I agree that tax cuts are not always the best option when it comes to looking for economic stimulation. I hope that other courses of action like you mentioned could be used more in the future. At this point, it is up to President Obama to help guide fiscal policy in the right direction.
ReplyDeleteI agree that cutting taxes are not the best option in this condition for the economy, particularly for the wealthy people.
ReplyDeleteAnthony, it's not always President Obama who gets to guide the fiscal policy whatever the direction is. He will eventually be forced to extend the tax cuts for the wealthy for two years if he wants legislations done in the Congress. I don't really like politics because they interfere with the economy in such a crucial time.
I think the most ironic thing about the tax deal is the hypocrisy it demonstrates about concerns over the deficit. How can someone claim to be concerned about the deficit while advocating for a policy that gives up hundreds of billions of dollars in government revenue?
ReplyDeleteExtend the tax cuts - put the money in consumers hands to invest on their own v. putting it in the hands of the Government. Too often do politicians support Policies that position themselves for elections (or re-elections) instead of making the crucial economic decision needed.
ReplyDeleteI believe the tax cuts are unlikely to push consumption too much. Unless the consumer demand picks up (which means the larger population-not the wealthiest-need more money to spend) firms will be unable to hire.
ReplyDeleteAlso, the article mentions hiring more people to teach in community colleges. I think this really does boil down to being a crucial issue as many of those unemployed cannot afford to go back to school as the more privileged are able to do. And it is extremely important to keep these workers' skills up-to-date to avoid pushing a large chunk of the population further back as they become under-qualified by the time the economy picks up again.