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Tax breaks mostly flow to the wealthy, since the poor pay very little income tax. And the wealthy tend to sit on cash during slumps. Thus, tax-cuts are not the
by tabtab 8y ago
Tax breaks mostly flow to the wealthy, since the poor pay very little income tax. And the wealthy tend to sit on cash during slumps. Thus, tax-cuts are not the best stimulus. The best stimuli are those that flow to the middle and lower classes, who are more likely to re-spend any gains, cycling money quicker into the economy.