Quote:
Originally Posted by classicman
Maybe just maybe we need a little short term help to stem the tide of rising unemployment, reduced monetarycirculation, lowered production and falling housing prices. Maybe tax cuts do help - even if its in only for the short term to keep more people working and to buy some time. Just for the short term till the long term plan kicks in... Maybe?
China February Auto Sales Rise 25% After Tax Cuts |
The American Recovery and Reinvestment Act includes such a short-term tax cut:
Sales Tax Deduction for Vehicle Purchases. The bill provides all taxpayers with a deduction for State and local sales and excise taxes paid on the purchase of new cars, light truck, recreational vehicles, and motorcycles through 2009. This deduction is subject to a phase-out for
taxpayers with adjusted gross income in excess of $125,000 ($250,000 in the case of a joint return). This proposal is estimated to cost $1.684 billion over 10 years
In fact, overall, about 1/3 of the provisions (and costs) of the bill are tax cuts and other tax relief/incentives.