Letting tax cuts on top brackets expire will have no economic effect

  • Thread starter Thread starter fcheerleader
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fcheerleader

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The argument to keep the top bracket of tax where it is or even to cut it is to stimulate investment. However with the recession the US economy has too much production capacity so it doesn't need more investment.

With production capacity utilization still below 75% how would creating even more productive capacity help?

Tax cuts/stopping expiration on the middle and low brackets on the rabroad
her hand stimulates demand as the money is normally spent nrabroad
invested. This demand is needed to close the utilization gap.
 
A little bit more in depth info on current capacity utilization

http://www.federalreserve.gov/releases/g17/current/default.htm

Demand will increase either way but once demand begins to increase so will the need for jobs and if the job creators like small business owners are dealing with a tax increase they will be slower to create jobs and expand dragging the recovery out over a longer period. Add in all the rabroad
her shit we've been talking about in the many threads and you have even more to hinder the growth in demand, job creation and recovery.
 
Rofl I love the Fed and their charts how the shaded recession ends in 2009. oooookkkk
 
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