Tax cutting affect the economy
How does tax cuts affect the economy?
Expert
Tax cuts improve the economy by providing the people higher consumer confidence and more spending power, which leads to them spending more of all of their income which leads to more jobs, more business investment in more efficient technologies, and ultimately higher GDP growth.
Negative income tax proposals call for: (w) paying $1 in taxes on every dollar of transfer payments. (x) reducing welfare benefits by levying higher income taxes. (y) instituting consistent work incentives for welfare recipients. (z) establishing a ne
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Complements: The two goods for which a rise in the price of one good leads to a reduction in the demand for other.
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