Stimulus plan: what do you think is more effective, tax cuts or job creation?
Cutting my taxes by $500 (since I'm single) would basically give me an extra $10 a week to spend. It might be enough to eat out an extra time or two, but not near enough for any meaningful economic stimulus. On the other hand, if my $500 was lumped together with the $500-$1000 for many other families, it would create a large pool of money that could actually be used to fund projects that would put people to work.
I made $55,000 in 2008. I haven't done my taxes yet, but I figure my tax for the year will be somewhere in the ballpark of $5500 - $6000 after deductions. In order for a tax cut to have any meaningful impact on my spending, it would probably have to be at least $1500-$2000.
- Sublime_SavvyLv 61 decade agoFavorite Answer
Cutting taxes does create jobs...and for the reason you stated that you'd spend your extra money. Our economy is consumer driven, so the more you spend, the more opportunity there is for businesses to profit and grow and hire employees. You chose to spend it on eating at restaurants--great, there's a waitress/waiter job or a cook. Someone else might spend that on a monthly payment on a TV at a local store or as a copayment on medicine.
The real choice you're asking about is whether or not we agree that the government should pool the money and spend it for us or if the consumers should be allowed to keep more of what they make and spend it. Every intelligent economist knows the New Deal delayed economic recovery because the government decided to spend the money for us. The last bailout (oh excuse me, TARP) has done nothing to help the economy. Instead, the bailouts have begun the nationalization of our banking and auto industries--you know, like national socialism where there is still private property but corporations are partially or wholly owned by the government...which is what is happening regardless of how Nancy Pelosi wants to word it.
Now tell me, why would the government want control of our transportation and our wallets??
- Tyler LLv 41 decade ago
Tax cuts are more effective as pooling in government money to create jobs (in the case of Obama's) would only create Inflation. So the belief that the situation will get better under a economic recovery plan such as Obama's is a lie.
But the tax cuts need to be balanced out and nothing as ridiculous as Bush's cuts. Maybe FairTax.
- 1 decade ago
i think that creating jobs is more efficient because cutting taxes wont help in more development of the country as the money recieved thru taxes is used 4 improvin infrastructure
although govt consumes a lot of tax by itself....
but it also has to use the money for improvin the city..... which it does to survive the next election
so in my view, creating jobs is more efficient.... as it wud also help people in paying taxes.......
- nothingconstantLv 71 decade ago
With new jobs, more tax revenue comes in... spreading the cost more and perhaps lowering taxes assuming government spending to be constant
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- 1 decade ago
I think they need to get off there A** and fix this