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To: sofiakp89
With the tax cuts, they act to stimulate the economy. Because it puts more money into the pockets of the taxpayers, they in turn spend more either on goods or services which increase the money that business have and that increases the amount of taxes that are eventually paid via the business...

That is a very basic economic overview of how I understand the tax cuts to work..

If we were to eliminate the tax cuts to create a temporary increase in the tax money the federal government received from the taxes it would cause the economy to slow down, and stagnate.. which would cause prices to rise creating inflation.

If that occurred the monies need to rebuild the Gulf Coast area would be harder in the long run for the fed to recoup..

That is a very basic argument again the tax cut unfortunately I have no place to really tell you where you can get the data to support this, perhaps some of the other freepers may have a better direction or a clear explanation.
21 posted on 10/09/2005 8:59:43 PM PDT by Americanwolf (I Served proudly.... how dare you tell me I have no convictions...)
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To: Americanwolf

A better way to finance this would be to target some extra tax breaks for companies who rebuild...plus, the LA and NO pols can't steal tax breaks.


28 posted on 10/09/2005 9:11:08 PM PDT by steve8714
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