Quote:
Originally Posted by whell
Hey Finn - here's a double whammy for you. Not only is Chrysler moving truck production back from Mexico bringing back 2500 jobs, they're also giving out bonuses. Why? A more favorable tax climate...
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I don't doubt that $1.5 trillion in tax cuts for corporations and the wealthy will have some positive impacts for corporations or the wealthy and will trickle down somewhat on the less privileged. The issue is whether this tax package was the right thing to do at the time in terms of equity, the deficit and inflation. A couple of anecdotes don't make it so.
It didn't simplify the tax code or close loopholes, nor will it pay for itself (as promised). What it will do is increase interest rates as well as concern from our creditors about the credit-worthiness of US treasuries (just yesterday
China expressed grave concern about US treasuries) and
bonds are reportedly entering a bear market. Increased interest rates will ultimately have a negative impact upon the economy. Meanwhile, enjoy your sugar high.