Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 1 decade ago

Tax cuts never work!!!?

Dow just broke 13,000 and tax cuts are horrible? Please explain that to me?

Update:

"Tax cuts never work", is sarcasm, for those who didn't catch it. I was imitating democrats.

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  • 1 decade ago
    Favorite Answer

    The tax cuts result in huge deficits, which causes the surge in the economy. Sure, works great for a while. However, the deficits compete with the stock market for capital. Eventually, interest rates and inflation will skyrocket, the economy will enter a recession and the markets will fall. It will be like the 1970s--double digit stagflation.

    The dollar is already losing stregnth against other currencies, and a lot of its support is foreign governments investing so much of their reserves in US Treasury instruments. This is unlikely to continue with low US interest rates and a declining dollar--they'll move to investments that can return real income. Then the bubble really pops.

    Good luck in your investing.

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  • jdkilp
    Lv 7
    1 decade ago

    Tax cuts almost always work.

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  • 1 decade ago

    whew-i was just about to answer you screaming at the top of my lungs(CAPITALS)-i 'm so glad you explained you were kidding-i agree wholeheartedly with you -the dems have a lot of people fooledit's sad

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  • 1 decade ago

    You seem to be under the impression that facts matter. Where do you get these strange ideas?

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  • Judy
    Lv 7
    1 decade ago

    Please put a few more words around your statement that "tax cuts are horrible" - in what way?

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