How will tax cuts help our economy?

I was wondering because Mitt Romney said he will make tax cuts but wouldn't that make our economy even worse? Wouldn't it just add up and make our HUGE debt worse?

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  • 8 years ago
    Favorite Answer

    Yes. You are right.

    Also - when taxes are low, business owners are LESS likely to put money back into their businesses by buying new equipment, hiring new employees, or building new facilities. That's because it's more fun to spend it on themselves. But when taxes are high, they spend MORE money on upkeep, employees, etc, because, hey, the government is just gonna take it anyway. Putting money back into those businesses is good for everybody.

    Romney is making his rich friends happy so they will give him lots of money for ads.

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  • Anonymous
    8 years ago

    Mitt Romney wants the business tax cuts to encourage businesses to produce in America. problem is, that the businesses might not make American jobs and will favor India and China for the total lack of regulations. For that plan to work, it would require sending back American labor movements back a hundred years to conditions like the Great Depression or like modern China and India. Liberal plans are not perfect either but irrelevent to your question. The core issue is that politicians are treating the economy like its a domestic issue when in reality, it should be foreign policy.

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  • Anonymous
    8 years ago

    Tax cuts for the middle-class are a good stimulator. Tax cuts for the very wealthy is not. It’s actually at the bottom of the list of economic stimulators. That’s because average Americans will spend that money, putting it right back into the economy, while it doesn’t affect the wealthy. That money ends up in a tax haven in the Caymans. Ask Mitt Romney.

    But don’t forget that Romney’s economic plan lowers his taxes WHILE raising taxes on people making under $30k and gutting tons of valuable social programs.

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  • Anonymous
    8 years ago

    Cut taxes on businesses. Prices for their products decrease. More people buy the product and pay taxes on this product. Business hires more people who's paychecks are taxed. The more people working, the more taxes are paid.

    Make sense?

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  • RJC
    Lv 7
    8 years ago

    No,,,he is also talking about gov cuts to make up the difference.....just like 0bama talked about 3 years ago.

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