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3 years ago

.In general, do you think that taxes should be raised or cut? Explain why.

Social Studies

1 answer:

nlexa [21]3 years ago

3 0

Answer:

That sounds like the old Keynesian idea made popular during Franklin Roosevelt’s New Deal: Cut taxes and increase government spending to “prime the pump” during a recession; raise taxes and reduce spending to slow down an “overheated” economy. Keynesianism seemed to have been finally laid to rest in the 1980s when President Ronald Reagan argued for a tax cut on supply‐side grounds, and even liberal economists now agree that such fine‐tuning has little effect on the economy.

Explanation:

1. In a free country, money belongs to the people who earn it. The most fundamental reason to cut taxes is an understanding that wealth doesn’t just happen, it has to be produced. And those who produce it have a right to keep it. We may agree to give up a portion of the wealth we create in order to pay for such public goods as national defense and a system of justice. But we don’t give the government an unlimited claim on our money to use as it sees fit.

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Answer:

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