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Tax Cuts 1 Year, 1 Month ago
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Barack Obama wants to let George Bush's tax cuts expire. I would like to know if tax cuts increase Federal debts and how it increases debt. Also, do tax cuts actually increase economic productivity?
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Re:Tax Cuts 1 Year, 1 Month ago
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Federal debt is only increased by government spending beyond its levels of revenue (e.g. taxes) and through the interest on said debt. Cutting taxes does not increase debt, but there is an argument that it slows the pay-down of debt.
However, studies have shown that proper tax cuts can actually increase government revenue. The reason is that the cuts open up the profitability of businesses, incent investment, and offer more buying power for consumers. This translates to more productivity and spending, which translates to more revenue collection for the government.
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kuleshs (User)
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kuleshs (User)
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kuleshs (User)
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kuleshs (User)
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