… it beneficial or not.
Three Question About Tax Cuts
When looking at the proposed tax cut, it is crucial to examine how it is related to the budget deficit. The current budget deficit is the result of politicians being irresponsible and not meeting budgetary constraints (Solotorovsky). Tax cuts may help the economy short term, but unless there are also commensurate cuts in spending, their only result will be a long period of budget deficits whose damage to the economy far outweighs any initial stimulus (Solotorovsky).
The tax cut has an effect on the AD curve and involves the multiplier effect. …
… the tax cut. Politicians need to become more responsible in their spending and look at other methods to decrease the deficit.
The proposed tax cut is a cause for debate among many people. By exploring three questions concerning the tax cut, there is greater insight into the actual effects that will be caused by the cut.
(Essentials of Economics / Chapter 12 Summary. (accessed 27 May, 2003)
Solotorovsky, Alec. COLUMN: Bushs deficit problem., University Wire. (2003): 17 January