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Electile Dysfunction (Current students plz look!)
(12-19-2017, 01:21 PM)Apoc Wrote: Yeah, there's no doubt the current political powers favoring business profits is good for US-based wealth building. At some point, though, the deficit is gonna catch up to us... I think. Foreign investment is keeping the dollar strong, but I gotta think there's eventually a currency that is a better investment than the dollar. Of course, if the rest of the world keeps doing stuff like currency manipulation (China) and Brexit than we'll golden for generations.

(12-19-2017, 01:14 PM)ViPER1313 Wrote: Answer the following:

To grow the current US economy, we should

1. Increase demand through increased capital distributed to the lower and middle classes through tax incentives and penalties for businesses holding vast sums of capital.

Or

2. Increase the supply of goods at lower rates and available jobs by increasing investments in American businesses through lowered taxes.

And why.

I choose Option 3 because your questions are loaded with biased assumptions.



I personally don't care what the business tax rate is because I know consumers inherit the cost through higher cost of goods or higher personal taxes... so the man is getting his regardless.

That said, most economic reviews I've read do not agree with your outcomes (in bold). 

https://www.cnbc.com/2017/08/30/theres-l...-jobs.html

While cuts in personal income taxes helped boost employment, investment and consumer spending, the same was not true for cuts in corporate taxes. Lower business taxes did help boost production but didn't lead to much new hiring, they found.

"In contrast to the personal income tax cut, there is no evidence that a cut in corporate taxes is associated with any significant impact on employment, despite the considerable and significant immediate increase in output," they wrote.


I'd also be interested in hearing how either of these are better at growing the economy* in the long run than reducing expenditures and balancing the budget.

*This tax plan has zero to do with growing the economy, but I'll give you that point for the sake of discussion.
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