How Tax Cuts Can Revive Our Economy
How Tax Cuts Can Improve the Economy. Photo by Sharon McCutcheon on Unsplash
Basically tax cuts improve the economy by increasing the amount of consumer consumption. When taxes are lower people feel more confident about spending money. If people feel the economy is in bad shape they tend to hold onto their money just in case times get tough. The Depression days were an example of this. People knew the economy was in trouble and as a result spent less money. When people pay less taxes they have more money to spend which makes them feel more secure about the economy. When consumers spend more money this increases the GDP (Gross Domestic Product) which automatically increases aggregate demand, giving the economy an automatic economic boost. More demand for products means more jobs too. The GDP is the amount of money the government is allowed to spend. The following video demonstrates the affect of tax cuts on the economy over time and the article is an interesting evaluation which describes exactly how tax cuts affect and revive the economy, explains aggregate demand and fiscal policy in plain English making it easy to read and understand. Even though tax cuts and reviving the economy do not appear to go hand in hand but as you will see from the following document tax cuts can improve a weak economy and influence consumer spending which increases the amount of money that the government has available. Presenting an interesting twist to government budget plans which needs to be considered.
Scroll down to view this surprising information in the original document written by Rev. Penny Dean formerly Hibbitts.
Scroll down to view this surprising information in the original document written by Rev. Penny Dean formerly Hibbitts.
Here's How
How Tax Cuts Can Revive the Economy Document
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Rev. Penny Dean
Business Management Made Easy; The Business Owner's Tool Shed
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Home/About Us/Privacy Policy/ Mission statement/Terms of Use/Disclaimer/Become a Member/How to Start Your Own Business/Marketing Your Business/How to Use Social Media for Business/How to Get Business Loans/How to Get Business Grants/Venture Capital/Other Websites by Rev. Penny Dean.
This website created by Rev. Penny Dean
Contact Us: businessmanagementmadeeasy@gmail.com
References:
1. Here's how tax cuts affect the economy. (2019). YouTube. Retrieved 18 February 2019, from https://www.youtube.com/watch?v=TjqYd-Mcq5A
2. Woman Holding Money photo by Sharon McCutcheon (@sharonmccutcheon) on Unsplash. (2019). Unsplash.com. Retrieved 18 February 2019, from https://unsplash.com/photos/rItGZ4vquWk
1. Here's how tax cuts affect the economy. (2019). YouTube. Retrieved 18 February 2019, from https://www.youtube.com/watch?v=TjqYd-Mcq5A
2. Woman Holding Money photo by Sharon McCutcheon (@sharonmccutcheon) on Unsplash. (2019). Unsplash.com. Retrieved 18 February 2019, from https://unsplash.com/photos/rItGZ4vquWk
