Is Obama relying too much on tax cuts?
source: http://krugman.blogs.nytimes.com/2009/01/05/is-obama-relying-too-much-on-tax-cuts/
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- tbowman131
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What he boils it down to is this:
"Other things equal, public investment is a much better way to provide economic stimulus than tax cuts, for two reasons. First, if the government spends money, that money is spent, helping support demand, whereas tax cuts may be largely saved. So public investment offers more bang for the buck. Second, public investment leaves something of value behind when the stimulus is over."
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"$140 billion for Obama’s tax break for workers, which gives most workers $500. But it sounds as if the rest is mainly, perhaps almost entirely, tax cuts for business. Not very New Dealish."
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- groups:
- News and Politics
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- tags:
- News and Politics, Obama, Recession, Taxes, 2 more
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JohnA [removed]
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First, if the government spends the money, then you have no say in where your money is spent, whereas tax cuts if they are put into savings will help relieve the so called credit crunch. Second, of value to who.
- 4 years ago
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JohnA [removed]
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tbowman131
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JohnA:
if the money goes into saving accounts there is no stimulus to the economy, it only bolsters the banks balance sheets. it's practically a second bailout for the banks...
- 4 years ago
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tbowman131
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footystud
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who cares about the implications of a tax cut??? Its about restoring faith in our poorly run government. Bush is not the only problem, our legislators are worse yet than him. Who knows, maybe the corruption will continue...
- 4 years ago
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footystud
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JanforGore
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Yes, same old thing. Where's the change? How much would I save with a tax cut? Thirty cents a day? With the cost of everything so high how is it a tax cut anyway? Five hundred dollars takes you nowhere. Where are the green jobs he talked about?
- 4 years ago
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JanforGore
