In 2003, the Internal Revenue Service began to mail out refund checks because of a change in the tax law. Economic forecasters predicted that consumption and GDP would increase because of higher refunds on income taxes. Pretend as if you are an economist and explain your thoughts on whether the tax cuts from the past few years have been successful in promoting economic growth or in preventing a deeper decline? Are there other changes to fiscal policy that you feel would have been more successful?In our current economy, it is obvious that the tax cuts from the past few years have not helped the economy. Business growth and job losses since the “relief” from government have not improved. In the rural area of Northwest Tennessee, five major factories have closed their doors and ceased production, forcing hundreds of workers to draw unemployment benefits for survival.
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