Monday, December 26, 2016

GOP: Cut taxes, change brackets; but what about deficits

Republicans in Congress are planning massive changes in the nation's tax system that would affect every family and business in America _ for good or ill



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  • OK, by cutting tax, means more disposable incomes - and will lead to increase in consumer spendings, leading to more economic activities and business activities - and bring about higher Economic Growth. But with reduction in taxes, got Government Revenue to increase Spendings on infrastructure, bridges, buildings etc?


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      • If no government revenue to jumpstart infrastructure spendings - then economic growth and job growth is driven by consumption spendings and not government spendings. This is domestic driven growth or internal growth. Then how about external growth through international trade and external demand?

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