New US Economy Policy Message Board

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Strategies & Market Trends : New US Economy Policy

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To: Arthur Tang who wrote (256)	1/26/2001 8:58:49 AM
From: Arthur Tang	Read Replies (1) of 435

Pre-requisite to the study of tax cut and its effect on the economy? The new economy is proposed to be $14 trillion this year pumped by the profits retained by corporations and individuals. Venture capital is estimated to be $210 billion. Tax cut proposed were $1.3 trillion in ten years. Each year, the tax cut($130 billion) will put the money in pockets of individuals which can not be consolidated to finance any large projects to pump the economy. Whereas, the profits from corporations(1-1.5% of economy) are used to expand their profitable businesses. Capital gains and savings of individuals are put into Wall street to finance corporations. The tax cut may be spend by individual to buy a meal Saturday night. It is only 1% of the economy but spend by 135 million IRS customers. The most benefit might be 1% growth in our economy; whereas, the corporate investment would yield 9 times in the economy. Corporate investments may give us 9% growth each year at its maximum efficiency. The new economy will continue to improve productivity, releasing excess man power to be hired in growth areas(job creation by technology). Productivity will generate more profits to be reinvested around the world. If tax cut dollars were spend around the world, how much will American economy be revived? While we want to pay down our debt, we want to control the profits and where we want to spend to have more economical growth in a rolling new economy based on obsolescence and replacement theory. Profits and not tax cut(part of the 1-1.5% of the economy) is our goal of the controlled growth factor in our new economy. You don't have profits, you don't have tax revenue to have any tax cut.

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