2010-09-24, 06:32 PM
I used Google Scholar and the first hit that came up was this paper that pertains to the Economic Growth and Tax Relief Reconciliation Act. The paper cites that the primary importance in implementing the tax cuts were to stimulate private spending in hopes of rejuvenating the economy. Even though many economic policies are dependent upon predicting the "taste" of a given consumer base, it is never ideal to fundamentally rely on inductive reasoning when major monetary concerns are placed into consideration. The paper gauged the results of the EGTRRAs intended purpose by employing the Auerbach-Kotlikoff model. The paper concluded that tax cuts are effective in employing the "wealth effect" and therefore stimulate consumption and reduce national saving. It is difficult though to trace the relationship between these three factors and how it allots to national savings and capital formation (i.e. production factories, industries, and other effective means of producing vital goods).
Discussing "tax cuts" under a given Executive administration is difficult to exactly discuss as it lends itself to vague generalizations. It would be more effective if you targeted a specific policy that was linked to the majority of the tax cuts so that there would be the potential for a more detailed conversation that exceeds the notion of political bias and generalization. Discussing topics should idealistically supersede bias of any kind, including political bias and should concern the individual on an informed level. It is important to therefore phrase the question in a detailed manner and rely on sources to guide the conversation in that direction in order to reduce confusion and side-conversation which would detract from the effectiveness of the discussion.
Discussing "tax cuts" under a given Executive administration is difficult to exactly discuss as it lends itself to vague generalizations. It would be more effective if you targeted a specific policy that was linked to the majority of the tax cuts so that there would be the potential for a more detailed conversation that exceeds the notion of political bias and generalization. Discussing topics should idealistically supersede bias of any kind, including political bias and should concern the individual on an informed level. It is important to therefore phrase the question in a detailed manner and rely on sources to guide the conversation in that direction in order to reduce confusion and side-conversation which would detract from the effectiveness of the discussion.