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Middle Class Tax Cut - What it Means for Us
So I've been using my skills in Economics and really thinking about what the Middle Class tax cut means for all of us. (Actually I was watching TV and I had an ampifany). Remember this is just theory and sometimes theory doesn't work out as well in reality.
A tax cut would mean the following:
More Money in the 401K Plans:
With more money, people in the middle class will put more money in their 401K plans. Since 401Ks buy stock in companies we will see a more stable and better stock market. See a lot of investors will buy stocks in a company, hold it and then sell, use the money to buy more stocks. Since the money will be used to buy and hold stock, we will see better gains in the stockmarket and in retirement accounts.
This will allow better retirements for a lot of people.
Larger Bank Accounts:
If people have more money, they will put their money in their bank account. This will allow a lot of the savings and loan banks to have more disposable revenue to make loans. This should open up the credit market and help to unfreeze credit. It will also mean that some banks that are losing money will make more money.
This will make getting loans a little easier.
Better Service Industry:
People will buy more consumer goods with desposable income. With more consumer goods being bought, small buisnesses that work in retail and service, like resturants, will enjoy better revenue.
Better Tourism Industry:
There will be a large boost to the tourism industry because people can afford to take trips. This should improve small buisnesses that work in the tourism industry.
Less Inflation (less debt):
People who need to use credit to make ends meet won't have to use as much if they have disposable income. This will cut the inflation rate and make our money worth more then it is.
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If anyone has anymore to add or I have another ampifany, I'll post it here, and feel free to add on to my list of things it will help.
I disagree. At least in my tax bracket, it will only mean a little more money to spend on beer. I mean, since the taxes automatically come out in withholding I doubt that many people will notice much, except after they file their taxes and get a huge refund.
After all, refund time is the time that most Americans even notice their taxes, and a larger refund, regardless of the withholding throughout the year, is their idea of a "tax cut".
I personally don't think that anyone in the US needs a tax cut at this time of high deficits, high debt, and two wars to prosecute. I think that we should either leave rates as they are or raise them slightly.
And I know how much I pay in taxes since I do my own every year.
The whole problem with the world is that fools and fanatics are always so certain of themselves, & wiser people so full of doubts.
-- Bertrand Russel
Did you just say raise taxs?
Somebody get a rope!
Yeah, I know, not a very popular with any politician, much less a Republican, but there it is.
A vote for TinSoldier is a vote for higher taxes across the board!
The whole problem with the world is that fools and fanatics are always so certain of themselves, & wiser people so full of doubts.
-- Bertrand Russel
It's only heresy if you raise it for the top 5% of earners.....They are the sacred ones.
______________________
RFO Outreach Coordinator
The enemy of "the best" is not "the worst." The enemy of "the best" is "good enough."
Just vote for the wannabe Obama.
Then you wont even have to worry about any tax cut, his record is so clear, he has voted for tax hikes 96 times in his kindergarden time as senator.
Good, I did. Thanks for the advice!
You know, some of the more liberal members of this site make me question my convictions sometimes.
But people like you remind me why I support Obama.
I guess that I'd rather have a wannabe for president than a has-been.
The whole problem with the world is that fools and fanatics are always so certain of themselves, & wiser people so full of doubts.
-- Bertrand Russel
"I guess that I'd rather have a wannabe for president than a has-been."
LOL!!! LOL!!!!! Love it!! That was a good one TinSoldier!! You made me laugh before I had coffee... now THAT is amazing :-)
"I SO voted for Barack Obama! 10/25/08"
Mission accomplished! Decimation of the middle class - check!
In Ohio, Downturn Upends Old Loyalties
Source: Wall Street Journal
BOARDMAN, Ohio -- John Butler's flower business is in such bad shape he's laid off 25 of his 26 employees and canceled his health insurance. Two weeks ago, the lifelong Republican voter made a decision just as dramatic: He plans to support Democratic Sen. Barack Obama.
"I looked at my situation and realized I couldn't afford to vote for McCain," Mr. Butler said. "I was as shocked as anyone."
The economic downturn has been felt especially hard here in the Mahoning Valley, a Democratic Party stronghold in Northeast Ohio. The unemployment rate is above the national average. Home foreclosure signs are ubiquitous. Mahoning County also is one of a dozen or so districts straddling the Ohio-Pennsylvania border where Sen. John McCain has targeted blue-collar Democrats.
But as the economic crisis has deepened, voters here are reacting in unexpected ways. Some, like Joe Sullivan, are plain angry.
Obama/Biden 2008
Its all about the state of Ohio, Baby
Ohio, Neil Young
Obama/Biden 2008
Ohio Veteran for Barack
Obama/Biden 2008
Heh -- vote the wolfman456/TinSoldier ticket -- demand protectionism and higher taxes during this time of economic uncertainty!
Sorry, I couldn't resist ;-)
The whole problem with the world is that fools and fanatics are always so certain of themselves, & wiser people so full of doubts.
-- Bertrand Russel
Wolf - hope you are feeling better.
Perhaps if there were rate cuts you might would see the items happen that you listed. Since these are credits the only time people will see this money is once a year and with various credits phasing out at very low incomes - where is the incentive?
For many the credits directly offset the payroll tax - so what happens to Social security?
It seems more than likely we will be entering next year with the 1992 scenario - Dem President and Dem controlled Congress. Clinton ran on a platform for middle class tax cuts but instead instituted a massive tax hike. Are you confident Obama will keep to his election platform in this economic environment?
BTW - good article by Arther Laffer. Even if you don't subscribe to the supply side view, he is very even keeled between conservative and liberal philosophies - calling himself a Kennedy Democrat. LINK
"The power to tax is the power to destroy" - John Marshall
McCain- Keeping Taxes Low Makes a Bad Economy Much Worse
Obama/Biden 2008
That's what I've been trying to say!
Is it too late to change my vote? Do you think the State of Oregon would understand if I asked for a do-over?
:D
The whole problem with the world is that fools and fanatics are always so certain of themselves, & wiser people so full of doubts.
-- Bertrand Russel