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To: SerafinQ

A two month tax holiday would do very little. Sure, it would put more money in people’s pockets. but it wouldn’t change long-term economic behavior, since everyone knows things would be back to normal soon. To solve the real problem out there, we need sound capital investment, and that takes a while to get under way, especially when funny money is keeping bad investments afloat.

Tax holidays accomplish about as much as tax rebates. That is, nothing. Remember how much you life changed the last time you won twenty bucks in a game of BINGO? That’s about how the economy feels when we get rebates.


7 posted on 12/02/2008 2:23:55 PM PST by Tublecane
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To: Tublecane
Any tax cut, no matter how Small or temporary, is worthy. Also, the amount a $50K/year earner would keep is an additional +/-$2,000. Then the consumer gets to decide which companies deserve their money and survival of the fittest companies is maintained.

When the government takes our money and supports bad companies, then they only put of their inevitable failure and take profits from the otherwise successful companies.

Though a rebate or tax cut, consumers funnel their dollars to “good” companies so that those companies can make capital investments.

This is called capitalism.

16 posted on 12/02/2008 2:43:11 PM PST by SerafinQ
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