Monday, May 29, 2006

Tax cuts do WHAT for the economy?

The Republicans keep passing tax cuts and claiming that they make the economy better. Someone needs to tell me how.

Those taxcuts are supposed to give businesses more money to invest. Supposedly these new investments will create more business and more jobs. Yet an Associated Press article published Friday points out that the S&P 500 companies are currently sitting on $643 billion in cash and equivalents that they don't know how they will spend! They are holding cash because there are no good investments for it.

So tell me - what do those tax cuts do for the economy again? Those S&P 500 companies don't know how to invest what they have sitting around now, and the economy is supposed to get better if we give them more money that they then won't know how to spend productively?

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