Do tax cuts stimulate the economy? That's the theory according to politicians
In reality, even economists aren't sure whether it actually works or not.
My personal opinion is that theoretically tax cuts will stimulate the economy but it isn't real life.
People's motivations are different. Does a CEO of a large corporate company who saved probably a billion or two dollars extra this year will spend it on growth and thereby creating jobs?
Most of them just pay themselves huge bonuses and get richer. A few others may stimulate growth tho but does it justify the cost of an extra budget deficit by cutting the tax rate? We don't really know.
And here's something interesting.
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