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To: Amy J who wrote (117514)11/13/2000 10:16:15 PM
From: Robert Salasidis  Read Replies (1) of 186894
 
So are you trying to tell me that if you gave 1 mil$ to each of 100 people, they would all instantly go out and start new businesses and hire 5-6 workers each. I don't think things work out this way. Some individuals may have a business oportunity that is just waiting for capital.

The argumenent was made as to the time frame of the economy pick up relative to a tax cut. My point is that it is not an overnight process. Furthermore, the first few years after a business startup there are likely to be losses, and tehrefore no increased tax revenues. Tax revenues would start happening after the startup phase when profits are made that are over and above losses that were incurred to that point.

Therefore - a tax cut today - yields increased tax revenues and a rising GDP several years later (and a 5-15 year time frame is not out of the question).
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