Comments on: The State of Taxes http://www.taxgirl.com/the-state-of-taxes/ Paying taxes is painful... but reading about them shouldn't be. Fri, 10 Feb 2012 20:02:48 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Doug http://www.taxgirl.com/the-state-of-taxes/comment-page-1/#comment-4042 Doug Fri, 01 Feb 2008 12:14:44 +0000 http://www.taxgirl.com/the-state-of-taxes/#comment-4042 I think the question should be "Are rebates going to help the economy or hurt it?" The rebates represent a huge increase in government spending, which will increase the deficit. It sends a message to everyone who receives the rebate: "Don't worry, the government will take care of you." Tax cuts, on the other hand, stimulate the economy by giving people more incentive to earn money (note 'earn', as opposed to 'get a handout from the government'). When you get to keep more of what you earn, you are likely to work harder, and increased productivity is what stimulates the economy, not free money. I think the question should be “Are rebates going to help the economy or hurt it?” The rebates represent a huge increase in government spending, which will increase the deficit. It sends a message to everyone who receives the rebate: “Don’t worry, the government will take care of you.”

Tax cuts, on the other hand, stimulate the economy by giving people more incentive to earn money (note ‘earn’, as opposed to ‘get a handout from the government’). When you get to keep more of what you earn, you are likely to work harder, and increased productivity is what stimulates the economy, not free money.

]]>