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Originally Posted by Snake Doctor
PLEASE STOP QUOTING SHEMP
We're past that now. Yes, cutting taxes on people who will spend the money (read: low income people) does stimulate the economy.
Now can anyone explain to me how cutting capital gains taxes or cutting income taxes for wealthy small business owners "creates jobs"?
This is what republicans are arguing the stimulus bill should be about. Let's cut taxes for investors and small business owners because that will "create jobs"....I fail to see the correlation.
For whatever reason, the republicans are actually against the tax rebates to low income workers.
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The theory is that by cutting taxes for the rich they are encouraged to invest capital in business ventures that will help the job market and spur on the economy. It's not unreasonable.
However, in the current economic climate anyone saving money via tax breaks is more likely to stash that money in the bank, or under their mattress, rather than risk it investing.
The reason republicans are against the tax breaks for low income workers is because a large segment of them didn't have to pay taxes. They got a full refund due to their income level. Giving them a tax break on top of a full refund is like giving them free money. That's how I understand their argument.