Quote:
Originally Posted by justplugit
Can't get into his mind Zimmy, but his reasoning must be with so much
cash sitting on the side line, with the market the way it is, by cutting the
capital gains, the $$$ would flow back into the market and stimulate
the economy?
If that is true, there should be additional tax cuts for the small buiness
man also to help him expand and stimulate the economy as well.
In addition,make 10% cuts in the current Govt. programs, stop the spending and we could start to bring our country back to live within it's means.
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Money has flowed back into the market. It was below 7000 in 2009. It is over 12000, which puts it at historic highs except for the peak in 07-08 Money has not flowed into the middle class. Obama has cut taxes for small businesses, but probably could do more. I would want to see a payroll tax cut. In any case, the tax cuts won't mean much. Demand for products and services will. It is also why a tax program that has income taxes from working higher than investment income doesn't make sense. Get middle class people buying and spending and that would help. The economy will finally be stimulated when the housing market stabilizes and consumer confidence grows. 30% of home sales right now are foreclosures. It is killing the economy. Government spending at this time isn't killing the economy. Long term it is a problem. However, almost every economist will agree that a recession was not time to cut spending.