Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (35986)	12/20/2000 2:03:01 PM
From: James Strauss	Read Replies (1) \| Respond to of 50167

I think that a tax cut would be neutral in terms of inflation, and is a way to stimulate the economy without creating inflationary pressure. L&F: Tax cuts tend to be inflationary because they increase the amount of money in people's hands to chase goods and services... One could argue that a tax cut in the midst of a recession won't be inflationary because prices tend to deflate in a recession... But the benefits of a tax cut could be offset by the FED making fewer rate cuts to offset the tax cut... In the end that's not good for public and private debt loads... A modest tax cut would still allow the FED to pursue a normal cycle of rate cuts... A large tax cut would reduce the number and frequency of rate cuts... I hope President Elect Bush gets good advice on this... Republican leader of The House Dennis Hastert already knows this... Jim