what actually is meant by a tax cut?

if some people taxes are increased so others can be cut. Is that a tax increase?

If rates are cut wile deductions are reduced it that a tax cut?

When I hear politicians talk about tax cuts or increases I'd like to know what cuts or increases they're talking about. It matters who's taxes they are talking about. I don't necessarily mean class either.

Update:

B. Kevork, you're wrong the Bush tax cuts were across the board so everyone got a tax cut, and revenues actually increased.

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  • 1 decade ago
    Favorite Answer

    A tax cut could mean many things. It could be the addition of new deductions or tax credits. It could mean an intentional reduction in overall tax revenues. It could mean a reduction in the marginal tax rate. It could mean a targetted tax break of some kind.

    You can tell a 'real' tax cut, because it reduces revenues, leading politicos to ask how it will be 'paid for.' If it's not 'paid for' with reduced spending or increased borrowing, it's not a tax cut, just a re-distribution of the tax burden. If it is 'paid for' with borrowing, it may be technically a tax cut, but paying it back will call for reduced spending or tax hikes, later.

  • 1 decade ago

    Any tax increase is bad. Even if they would pass an increase targeting only the "rich", it would come around and make life harder for the middle class.

    You see...it's the rich who hire people to work in their businesses. If they're paying more in taxes, that means less money for pay raises, bonuses, better benefits, etc., etc. And if taxes are raised too high, it means cutting employees to continue making ends meet. Or it means increased prices so the "rich" who run the businesses can keep their employees and pay their higher taxes.

    No matter which tax bracket gets the increase, it always comes back to hit the middle class the hardest. Which is kind of ironic...since it's the middle class politicians pander to when they make campaign promises, only to cause more hardships on them by fulfilling those exact promises.

  • Anonymous
    1 decade ago

    Tax cuts are generally a smaller increase in taxes then planned. So instead of implementing the planned 4% tax increase they only implement a 2% increase and viola! In political speak that is a tax cut.

  • 1 decade ago

    All for cutting tax rates and reducing deduction.

    Think DNC will get the AMT eliminated?

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  • Anonymous
    1 decade ago

    If I have to pay the government more, so the poor and middle class can pay less, it is a tax increase.

    If the poor and middle class have to pay more so I can pay less, it is a tax cut.

  • Anonymous
    1 decade ago

    Something that is alien to Democrats and liberals.

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