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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: smolejv@gmx.net who wrote (32768)	5/1/2003 3:14:47 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 74559

DJ, A fairly good analogy... My own personal opinion is that the tax cuts are unnecessary and will ultimately prove to be counterproductive to an economic recovery, or at a minimum prolong the length of time it takes to get there. I don't think that tax cuts for the middle income folks up through the higher income folks will produce any significant additional consumer spending, which is (IMO) the great fallacy of the argument(s) used to support the tax cut. Most folks will either save the money, or pay down existing debt. Only at the very lowest income levels would the vast majority of the realized tax savings be spent. I would rather that the government clean up its own balance sheet as opposed to "gifting" its taxpayers where there's no guarantees of any optimal or desired results forthcoming. But, that's just my opinion, and not a very popular one at that... KJC

To: smolejv@gmx.net who wrote (32768)	5/1/2003 4:33:38 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

Good analogy. I wondered if I'd misunderstood, then Kerry pulled out a $600 pocket knife. Kerry, I meant a REAL tax cut. Like individuals no longer need to file tax returns or pay any taxes until further notice. I think that would make a difference. To pay for government services, Uncle Al can click over a trillion pixels of new US$. He doesn't even have to pay for ink these days, or oil for printing presses. Normally that would be inflationary, but in today's situation, there wouldn't be inflation. It's deflation people seem to worry about. The government could offer US$100,000 per soldier to sign up and take over Africa, the middle east and anywhere else. Heaps of Africans would love to be in the USA African Army on a salary of $100,000 per year. That would tidy the place up. The Middle East could be handled like that too. Offer a big pile of money to sign up into the USA Arab Army. That'll settle down the middle east. Imagine the turbo boost to the economy. Demand would be huge from those countries. They'd want CDMA2000 cyberphones by the 10s of millions. Even 100s of millions. Money talks and in a viciously deflationary environment, Uncle Al can produce a LOT of it. As you say, THIS is a tax cut. Mqurice