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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (23864)7/11/2000 9:55:54 PM
From: nihil  Read Replies (1) | Respond to of 769670
 
Tax increases are deflationary. They reduce disposable income and investible funds. Reductions in demand reduce the total amount of transactions.
Tax decreases leave more money in the pockets of taxpayers and increase demand. Without a simultaneous increase in capacity, a tax cut will increase inflationary pressure. Eventually, a tax cut may increase productive capacity by accelerator effects. Economics 101.


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