On Jan 14, 2008 6:49 AM, Gruss Gott <[EMAIL PROTECTED]> wrote:
> They always work *short term*.  Analogy time!
>
> Let's say I tell you that I can cut your house payment by 20% and all
> you have to do is take a mortgage with my bank.  You do, because, hey,
> payment cuts always give you more money right?  Uh no.  Payment cuts
> do not magically manufacture money.  In this analogy, of course, what
> I don't tell you is that I'm going to raise your rate as well as
> extend your term.  Are you better off?  Of course not.


A small business gets a tax incentive. Some will take the extra bonus
money for themselves; others will use it to grow the business. The
reinvestment is a success and they pay more in taxes because they have
a larger business now.

Half full or half empty?

> (Side note in your favor: there's no conclusive proof that production
> increases with tax cuts (thus revenues), but it may.  However even if
> it did, you can't spend move than pay and think you won't go into
> debt.)

I thought the last seven years prove it.

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