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Why does a slight tax increase cost you $300.00 and a substantial tax cut saves you $30.00?


It has to do with the money multiplier, if you really look at it, governement spending creates a much larger economic boost than tax cuts do, this being said, the government could boost our economy by spending $1,000,000 on erasers made by Papermate or divide it up and give it back as a tax cut, looking at it from the big picture spending it makes more sense for our economy because the company will use that money to create more erasers and more business in our economy while the families will take their share of the money and only put some of it back into the economy. Thats the savings multiplier.
I don't know if any of that helps, simply put, when the government spends money it does not save any of the money it gets, tax payers do.

Brian P. O'Gorman:

That sounds like some fuzzy math, must be courtesy of the government.


this made me laugh :)
good question, I guess this is a question for the brass or any of the economists on this site.


cuz someone as they say stinks at math :)))


Our beloved government in action!


oh yeah....

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