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To: Casaubon who wrote (64821)12/20/2000 7:44:00 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 99985
 
There is a big difference between the real tax and the equivalent of oil prices as a tax.

A real income tax cut, channels money from projects which make the country more productive (better roads, fundamental research, better schools etc.) to consumption and therefore inflationary.

Payment for higher energy prices move those $$$ outside the system for some one else to spend on consumption.

Haim


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