govtax - and some of it can be spent in ways that do not...

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PLEASE DO NOT FORGET TO PRESS “ACCEPT” PLEASE DO NOT FORGET $4 TIP AS DISCUSSED What benefits do you see for the U.S. economy in tax-sparing credits? Should it be expanded or reduced? Why or why not? Tax credits are a good way to help spur extra spending in the economy, and thus help the economy to grow and recover from a recession. When taxes are cut or credits given, individuals and households then have a higher level of disposable income available, which translates into this higher spending. So, tax credits are good in that they do encourage spending and economic growth, however, they are not 100% effective because some of this excess income can be saved (not spent at all)
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Unformatted text preview: and some of it can be spent in ways that do not actually help the economy (on illegal drugs, etc). So, while I do see a benefit for these credits, I think there are better ways the government could use this money to help the economy. If the government were to spend this money on its own, they could spend it in targeted ways such as on road improvements, healthcare, etc ways that would be more beneficial to the economy and create more jobs. Thus, in conclusion, I think this program should be reduced and the money repurposed elsewhere....
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This note was uploaded on 01/18/2012 for the course HOMEWORK AC420 taught by Professor Atkins during the Spring '11 term at Kaplan University.

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