posted on Oct, 9 2009 @ 05:06 PM
Tax cut- Lowering the portion of taxes payed by a person or company
Tax credit- After being taxed, some of the money is redistributed to chosen people
The preferable approach is the tax cut. Credits are inefficient and take away from the total money in the hands of the people.
The term "tax cuts for the rich" is just rhetoric for discrediting an across-the-board tax cut. Since the wealthy pay most of the taxes anyway, why
aren't they entitled to a percentage back just like you or me. Also, those that receive the money back, rich or poor, utilize the money improving
The best economic move is not the best political move. Politics is about image, economics is about results. The problem with all of this is politics
is controlled by people worried about the here-and-now with no regard for long term effects of their actions.
The ridiculous spending we have put into failed institutions has inflated the money supply and soon will pass the price increases to the common man,
but at the same time, the government looks good because it is doing something with the intent to help now. While people have less money to spend,
people losing their jobs, lending is down, savings are non-existent, and debt as high as it is, a dramatic increase in price could cripple the
consumer, the economy.