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To: econjack
But we have so much debt, that isn't really practical.

The reality is that taxes are going to have to increase, and spending is going to have to radically decrease. Think no SS, Medicare, overseas military, etc. There is no money, and a huge amount of debt

20 posted on 12/08/2010 7:06:42 AM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: redgolum
But we have so much debt, that isn't really practical.

Really? Why??

If you cut taxes on income, both corporate and personal, both have more money to spend in the economy, thus driving up consumer demand, augmenting hew hiring and putting unemployed workers on the payroll. Since those workers are once again paying taxes, tax receipts actually go up, especially if the private sector views the cuts as permanent.

The current tax extention is a mistake only in that they put an expiration date on them. This alters the psyche of the consumer from one of greater purchases in the market to one of taking that temporary income and using it to pay off debt, or save it for a rainy day...neither of which kick-starts the economy. Nope...permanent tax cuts for both corporations and individuals are what's desperately needed.

21 posted on 12/08/2010 7:19:37 AM PST by econjack (Some people are as dumb as soup.)
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