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Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (8376)	5/20/2009 4:59:03 PM
From: RetiredNow	Respond to of 86356

Not true. In terms of stimulus, economists will tell you that tax cuts for consumers are not a very good idea. In this country, those dollars are simply either put in the bank where it does not increase consumer demand or they spend it on foreign products, which does very little for the economic well-being for our country. Then on top of that we are borrowing that money. So we borrow to spend on Chinese goods? That's a really bad idea. For long term stimulus, tax cuts for corporations are the best idea. Another good idea is to target tax cuts and subsidies for corporation and consumers on American industries that we are trying to develop, like renewable energy. Those tax cuts will have a positive ROI. Lastly, government subsidies of key infrastructure projects or public spending projects like education investments all have positive ROIs as well. But tax cuts for individuals? I wouldn't do it, if I was in charge. Very little bang for the buck. The only time this would be appropriate is if we have surpluses to give back. However, my rank ordering above would still apply, before I'd consider tax cuts for individuals.