Monday, August 15, 2011

How does a single individual being wealthy...?

The purpose of cutting taxes to the wealthy is to stimulate the economy through job creation. Known as the "trickle-down" theory, the government cuts taxes for the top percentage of income-makers (such as the top 2% for example, which is what President Bush believed would work) in order for their enterprise to have more money for further expansion which would result in more jobs. For example, if Donald Trump's taxes are cut for a fiscal year, theoretically, he would have thousands of more dollars to open up more hotels or Business ect., that in turn results in more jobs (lowering the unemployment rate and stregthening the economy). Of course, this is only a theory. Taking President Bush's tax brakes as an example, the government does not require anything get down with the money "saved" from tax brakes. In conjunction with the Trump example, Donald would not be required to open a new hotel or business, he could use that money saved anyway he wanted. The "trickle-down" theory for tax cuts in an outstanding way to stimulate the economy and relieve national debt. However, like another theory, how it is employed and regulated will produce the results.

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