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Politics : Formerly About Advanced Micro Devices
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To: combjelly who wrote (821299)12/7/2014 2:28:33 PM
From: i-node  Read Replies (1) of 1584716
 
>> What is amusing is now Dave is arguing that tax cuts are not stimulative. I happen to agree with him, but I haven't been arguing the opposite until that very moment.

I've never argued that arbitrarily conceived tax cuts are stimulative, or that increases in EITC are stimulative. Energy credits are generally not.

I have argued that tax cuts that encourage investment (which is what creates economic growth) can be stimulative. Improperly targeted tax cuts -- those that spur consumption rather than investment -- have generally failed to be stimulative.

Credits under Section 38 were highly stimulative, as has the Section 179 allowance been.

So, you really have to consider the kinds of tax cuts; you can't make a blanket statement that ALL tax cuts are or are not stimulative.
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