Wagner's MBA Law of Tax Cuts: The essence of the tax cut argument is about whether the "cut" goes into spending activities that have the largest multiplier in the economy; that is, how many times does the money turnover in the economy and what was created when the money changed hands. It is really difficult to estimate the multiplier but if more money is in the hands of people who hire other people (trickle down?), that trims one level of indirection, because consumers only buy things and don't hire people directly (trickle sideways?). There is a bit of semantic problem with the term "tax cut", because tax levies are fiscally year by year, so the government allowing the taxpayer to keep the money that was already their's in the first place is not really a cut, but just taking less of some that isn't yours. Now you know more than most politicians knows about the U.S. Economy.
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