How can tax cuts help revive the economy

How can tax cuts help revive the economy - among those who...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
How can tax cuts help revive the economy? ECON312 When talking about tax cuts we need to look at all they would involve and what shape the current economy is in. We can look at the most important area which is the lower and middle class of America which is were most of us fall. We can also look at the cuts for business that are important to us because of the possible jobs they house. Tax cuts for the lower and middle class help build more income which would then create more spending. This spending would go to industries like automotive, household appliances, food, clothing and the likes. In turn this would create jobs and allow companies to keep employees. It would also put more money back into buy creating taxes collected for those items. “Tax credits for business would help keep employees working and create more spending
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: among those who are.” (Sammartino, 2001) This would help shift the aggregate demand which would put more tax money back into the government. It would also shift the aggregate supply and create more jobs in the long run. When we have a good balance between aggregate supply and demand we would have a better balance of government expenditure and collection thus possibly creating a surplus which could then go back into those well needed social services and other government created services. REFERENCES Sammartino, Frank (2001, January 01). Federal Income Tax Cuts and Low-Income Families . Retrieved from http://www.taxpolicycenter.org/publications/url.cfm?ID=410250...
View Full Document

This document was uploaded on 07/31/2011.

Page1 / 2

How can tax cuts help revive the economy - among those who...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online