Tax Cut

A tax cut is a reduction in taxes. The immediate effects of a tax cut are a decrease in the real income of the government and an increase in the real income of those whose tax rate has been lowered. Due to the perceived benefit in growing real incomes among tax payers politicians have sought to claim their proposed tax credits as tax cuts. In the longer term, however, the loss of government income may be mitigated, depending on the response of tax-payers. Depending on the original tax rate, tax cuts may provide individuals and corporations with an incentive investments which stimulate economic activity. Politically Conservative opinion-makers have theorized that this can generate additional taxable income which could generate more revenue than was collected at the higher rate, although this view is almost universally rejected by economists. The longer term macroeconomic effects of a tax cut are not predictable in general, because they depend on how the taxpayers use their additional income and how the government adjusts to its reduced income.

Read more about Tax CutTax Cuts in The United States, Capital Gains Tax

Other articles related to "tax cut, tax, tax cuts, cuts":

Tax Cut - Capital Gains Tax
... occurred regarding the optimum capital gains tax rate, with some advocates calling for tax cuts in the belief that a lower rate (e.g ... the creation of new jobs, reduces unemployment, and has the paradoxical effect of increasing tax revenues more or less immediately, an idea first proposed by economist Arthur Laffer while an advisor to ...
Scott Brown - Political Positions - Fiscal Policy
... Brown is a signer of Americans for Tax Reform’s Taxpayer Protection Pledge ... should we give them even more?" Brown opposes a proposed multi-billion dollar tax on banks to recoup bailout money and prescribing of bank executive ... He also opposes it on the grounds that the tax would likely be passed onto consumers in the form of higher service and ATM fees ...
Economists' Statement Opposing The Bush Tax Cuts - Content
... The tax cut plan proposed by President Bush is not the answer to these problems ... the Bush plan, there is wide agreement that its purpose is a permanent change in the tax structure and not the creation of jobs and growth in the near-term ... The permanent dividend tax cut, in particular, is not credible as a short-term stimulus ...
Luis Fortuño - Recent Events - Economic Crisis
... to pass as a "general strike" over government budget cuts ... of Law 154 which imposes a temporary excise tax on overseas sales by major corporation over 6 years in a declining scale beginning at 6% which may be taken by affected ... retroactive to January 1, 2010, tax relief including a 50% tax cut for individuals and 30% for businesses, beginning with a 7–14% tax cut for individuals ...

Famous quotes containing the words cut and/or tax:

    For the sin he had committed, Kharis was condemned to be buried alive, but first they cut out his tongue, so the ears of the gods would not be assailed by his unholy curses.
    Griffin Jay, Maxwell Shane (1905–1983)

    Change of fashion is the tax levied by the industry of the poor on the vanity of the rich.
    —Sébastien-Roch Nicolas De Chamfort (1741–1794)