tax cut

tax cut

A tax cut is any reduction in taxes. A government may implement a tax cut as a part of its fiscal policy, which can contribute to lower taxes, higher economic growth, or the increased or decreased consumption of the thing being taxed. How tax cuts effect the economy is varied and controversial, the effects of income tax? cuts, dividend tax? cuts, capital gains tax? cuts, GST cuts, sin tax cuts, all have differing economic results. Tax cuts are common policy plank of the the political right?, with the goal of reducing the size of the public sector relative to the economy.

Tax cuts are frequently hot issues if only because of the sheer complexity of figuring out what long term impact they may or may not have. In the short term many tax cuts will often disproportionately favor the wealthy who pay more taxes overall. In right-wing politics? it is common to claim however that
the increased discretionary consumption or investment will stimulate the economy. This language is almost never used to describe any measure other than a tax cut. Some positions with typical supporting arguments:

fiscal policy,employment, Conservative, taxes, starve the beast, tax cuts create jobs?


[+] tax cuts are always bad.

[+] tax cuts are always good.

[+] tax cuts to services and incomes are good

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