Question for Conservatives about tax cuts? How does it work?
I want to know how tax cuts work. But I made a guess at the bottom.
It sounds like tax cut is giving the wealth back there money. Mostly for giant corporations, and it deepens on what they do with the money. Some just give themselves a raise, Some hire more employee with that money, and the other expand there business (Lets say somebody owns a business in Ohio, with that extra money he can expand his business to P.A. New York , down south or over seas and later it builds employment).
please explain it, I know I'm way off.
- Anonymous1 decade agoFavorite Answer
Tax cuts have been bad mouthed by the left and the media. I benefit from a tax cut and you do too.
When taxes are cut you take more money home in your pay check( less federal tax is deducted.)
If you have more money to take home you can save more or spend more for things you want/need.
Charitable giving always goes up when a tax cut is given to the people. Jobs are created, by businesses when tax cuts are given. When there are more jobs, states get more taxes paid and people are better overall.
Do you think you know best how to spend your money or does the govenment who usually wastes it on pork projects?
I would rather keep an eye on it in my pocket. Tax cuts do not mean that we do not fund the government. It just means we put the government on a budget and make them accountable for their spending. They no longer have a blank check.
Unchecked spending is a credit card bill that we are running up for our children and their children to pay. It is not a very good gift.
- empLv 61 decade ago
OK first off it's not just a tax cut on the wealthy. It's a tax cut across the board from min wage workers to corporations.
Here is how it goes.
If people have more money, they spend it. This in turn fuels production which fuels profits. Profits are then used to increase production which employs more people. The more people employed, the more tax revenue coming in...even when you have cut it. This has been proven time and time again to be true starting with JFK.
Yes some will simply horde their tax cut. However most will utilize that money to spend or increase their businesses from expanding and hiring.
- sha_lyn68Lv 71 decade ago
A tax cut lets everyone keep a higher percentage of their own hard earned money. Liberals have a hard time understanding percentages for some reason and will jump up and down that the wealthy are getting bigger cuts when that is not true.
Let's make this really simple.
Say your state has a 10% tax on food.
you spent 100 dollars buying the food to fix a nice fancy dinner for 2. Your taxes on those groceries is $10
Your neighbor goes to the same store and buys bologna cheese and bread for for $10. They pay $1 in taxes of the food they purchased.
The following year the food tax in your state is cut to 5%. You go and spend that same $100 on your special meal, but this time you pay only $5 in taxes.
Your neighbor goes and buys once again the fixings for bologna sandwiches, but only pays 50 cents in taxes.
You now have $5 more to save or spend than you did last yr for the same meal. Your neighbor has 50 cents more money than he did last yr for his same meal.
No one gave you back any money. The store collected less taxes from both you and your neighbor.
Liberals would want to continue to collect the 10% tax from you and charge you neighbor a lower tax percentage. Not only that, but they want to go to your other neighbor, who didn't go to the store, and give him some of your money too.
- oldstyleman_2000Lv 41 decade ago
I'm still waiting for something to trickle down from back in the Ronald Raygun days. The only thing that trickles down these tax cuts for the rich is yellow and salty. Have you noticed the concentration of wealth has tilted to the top 5 percent more so since then while the middle class is taking a bath, or a golden shower.
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- Anonymous1 decade ago
The gov'ment confiscates money from hard working wage earners and redistribute it to those that refuse to work.
Taking from corporations is just another way that those higher costs of business is passed on to the consumer in higher prices, or they move to another country where taxes aren't as high.
- Anonymous1 decade ago
It means the Government takes less of the money I earn to give to people who do not.