[Sephiroth]

Originally Posted by OLD BOY

Don't be ridiculous, jfman. As one who claims to be an expert in economics, this is pretty poor form.

On tax. If tax reduced to zero, you would not gain any revenue. Why do you always resort to extreme views like this? You also wouldn't get any revenue if you increased it to 100% because there would be no incentive to work. Obviously.

Income tax cuts reduce the amount individuals and families pay on wages earned. When people can take home more of their pay, consumer spending increases. This personal consumption drives almost 70% of the economy because it’s one of the four components of gross domestic product.

Capital gains tax cuts reduce taxes on sales of assets. That gives more money to investors. They put more money into companies, through stock purchases, helping them grow. It also drives up the prices of housing and other real estate, oil, gold, and other assets.

Business tax cuts reduce taxes on profit. These give more money to companies to invest and hire workers.

As for the EU, the impact of tariffs works both ways, and you are forgetting about our trade with the rest of the world increasing.

Could do better, jfman.

One of your better contributions, OB.