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

To: combjelly who wrote (851655)	4/24/2015 3:59:31 PM
From: TimF	Respond to of 1578623

Raising taxes and using the money to give to others is redistribution. Raising some taxes and cutting others is not. Redistribution is taking from some to give to others. Tax cuts are taking less not giving. Which is not to say that you can't redistribute from the poor to the wealthy, for example corporate welfare largely funded by a simple sales tax or VAT is a good example of "redistributing upwards". The idea was that if they cut the progressive taxes then the economy would boom If that was the idea it wasn't a very reasonable one. Economic theory and history suggests that cutting such taxes will help the economy, but not typically cause a quick boom. There would be usually be a modest initial benefit from a stimulus effect, and a smaller (per year, larger over time in total) and more reliable long term supply side benefit. But the longer term growth benefit is typically small per year and can easily be swamped by other factors, and borrowing more can crowd out some of the stimulus effect as well as creating a fiscal situation that reduces economic confidence.