A temporary reduction in tax rates on individual incomes can be a powerful weapon against recession.
Sentiment: NEGATIVE
History shows that tax increases during a recession are a recipe for greater unemployment and economic loss.
Here's the problem if you keep raising tax rates: You slow down economic growth.
In the middle of a recession, where we're just climbing out of it, where the economy -unemployment is still at 9.7 percent, the idea of raising taxes and reducing spending is a prescription for disaster.
Let's be clear: raising taxes during a very slow recovery is likely to lead to another recession, and it will do absolutely nothing to balance the budget.
In the middle of a recession no tax increase is justified because it kills jobs, and any tax increase is a job-killing measure and should be defeated.
The last thing you want to do is raise taxes in the middle of the recession because that would just suck up and take more demand out of the economy and put businesses in a further hole.
Surely, the best and most effective measure is to get the economy moving and shorten the period of recession or slowdown. That's the rationale for Gordon Brown's 'fiscal stimulus' and it sounds like a good one to me.
Reduced marginal tax rates on individuals and business fosters growth every time.
I am not for raising taxes in a recession, especially when it comes to job creators that we need so desperately to start creating jobs again.
Well, you know, we've got a lot of stimulus in the economy already from the tax cut, from the lowered interest rates, and also from the refinancing of mortgages.
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