A Tax Cut is not a 'cost'


Is anyone else out there tired of hearing how much a tax-cut will 'cost' us? Appropriation bills are 'costs', where-as tax cuts are decreases in tax rates that are charged to Americans. That is, the federal government will be charging less than it normally would. If anything, from the perspective of the average America, it should be considered a 'cost decrease'. It is the same way department stores lower their prices.

Even calling it a decrease in revenue is not entirely correct, because tax cuts can actually lead to increases in revenue, the same way reduced prices sometimes lead to increases in sales.



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Last night they were calling the reduction in the "marriage penalty tax" a marriage "deduction". That makes it seem as if married people are getting an actual deduction off their taxes instead of getting a reduction off the amount of extra taxes that they pay compared to single people. (If my spouse and I weren't married, we would pay about $1,500 less in taxes than we currently pay).

Posted by: bogie at January 8, 2003 7:17 AM

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