SI
SI
discoversearch

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 : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Alighieri who wrote (456899)2/16/2009 11:22:07 AM
From: i-node  Read Replies (1) | Respond to of 1577566
 
>>> What's the difference between tax cuts on a budget in deficit and deficit spending?

The difference is huge.

Tax cuts can target specific areas, such as capital investment. While deficit spending has all the trappings of a Congress run amok, which is what the current bill sees. There is also little, if any, potential for pork in a tax bill.

Now, it is a fact they can foul up tax cuts, too. But to date, we've not had a problem with it. So, while a spending bill can include welfare like Unemployment benefits and foodstamps and "mortgage relief", it COULD happen in a tax cut but is far less likely. And you don't have political payoffs like the money going to ACORN and others.

The most obvious exception is the EITC which is welfare in disguise.



To: Alighieri who wrote (456899)2/16/2009 1:35:16 PM
From: Taro  Read Replies (1) | Respond to of 1577566
 
What's the difference between tax cuts on a budget in deficit and deficit spending?

A tax cut of say a billion leaves that billion in the tax payers pockets to spend.

Government spending of that billion taken out of same tax payers pockets, however, leaves the same money less a hefty processing fee (cost of 'administration') only in the tax payers pockets.

The latter no doubt is the way of choice for creating tons of new jobs - in the administration.

Taro


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News