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

To: combjelly who wrote (553039)	3/4/2010 12:49:12 PM
From: TimF	Respond to of 1576882

Making the tax cuts more durable isn't going to result in an increase in business. The extent people pay attention to the fact that tax breaks are temporary (in particular short term, 30 year tax brakes would for many purposes be responded to as permanent and would actually be longer lasting that most tax changes that have no deadline, the issue is more 1 or 2 year cuts) is debated among economist, but its certainly a factor. If people think the tax cut is going to go away soon, and esp. if they think its going to be followed by a raise to a higher rate, even individuals will be less likely to invest (or even spend) it, and in particular businesses are less likely to make long term investments based on post tax return calculations using the rates that are going to go up soon.

To: combjelly who wrote (553039)	3/4/2010 4:08:54 PM
From: tejek	Respond to of 1576882

"Its not so binary esp when your considering a whole nation." There you go again, Tim. Running around in little circles and waving your hands. Making the tax cuts more durable isn't going to result in an increase in business. Ok, granted, it eventually will if at least some people hire. But it isn't a slam dunk for a particular business. As the article you posted points out. Now, it would be great if business owners would hire betting on the economy picking up and stimulating demand for their services. But most small business owners aren't going to think that way. Tim doesn't think. He simply repeats his credo. He believes less gov't and taxes automatically leads to growth. Its amazing that people can be so formulaic. If only life were like that......it would be grand. And it doesn't matter how much contrary evidence you show them, they are convinced the ideology they live by is infallible.