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Politics : The Donkey's Inn -- Ignore unavailable to you. Want to Upgrade?

To: FastC6 who wrote (518)10/9/2001 12:16:05 AM
From: Mephisto  Respond to of 15516
 
And you were reported to SI the last time that you created trouble here.



To: FastC6 who wrote (518)10/9/2001 6:17:56 AM
From: Kenneth E. Phillipps  Read Replies (2) | Respond to of 15516
 
There is an economic reason why someone who paid a small amount of income tax should get a rebate out of proportion to someone who paid a higher rate. The person who paid less income tax has a higher marginal propensensity to consume meaning a higher percentage of his income is devoted to consumption expenses rather than saving. Therefore, he will spend a higher percentage of the rebate meaning a greater stimulus effect.


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