The Tax Questions Blog

Posts Tagged ‘economy’

Question: How does cutting taxes actually increase tax revenue?

Answer: It increases revenue because it leaves more money in the hands of the consumers who spend it, and the stores that they spend it at have to hire more people and the manufacturers that provide the goods bought have to hire more people, and those people who are working at the stores and manufacturers are taxed bringing in more revenue than was lost by lowering the rate.

If you read a good macroeconomics book, they will describe this and talk about the money multiplier or speed of money. Each dollar that the government does not take is actually spent 3 to 6 times so it is worth $3-$6 toward the gross national product and those $3 to $6 are also taxed raising revenue even though the rate is lower.

It has worked for every major tax cut but one since it was used by John Kennedy in the early 1960s.

Gaming Tax Change Worries County Officials

Gov. Terry Branstad's proposed gaming tax increase could mean millions less for Polk County. That has Polk County Supervisors very worried.

Do we need more corporate tax cuts

Question: do tax cuts help the economy?

Answer: in the grand scheme of things... I don't think so.

A second stimulus: Are tax cuts the answer?

President Obama reportedly is considering a second stimulus depending more heavily on tax cuts than the first. Will that save the economic recovery?

House Debates $825B Stimulus Package (Bill). Spending v. Reagan-John F Kennedy Tax Cuts

Question: Does California have a reciprocal agreement with Nevada for trade in credit given towards sales tx on new car

Bought a new car in Nevada. I live in California. Was told by dealer that the new law which allows for the sales tax to be calculated based on taxable sales price minus the trade in allowance multiplied by 7.75%would apply to California due to a reciprocal agreement. In my situation taxable sales price was 29,500 with trade in being 20,290. That would put my sales tax at 718.00 based on the new taxable amount of a little more than 9,000. California is saying that I must pay tax based on total taxable sales price. No trade in allowance. This is after the dealer in Nevada said that the new law would apply in Cali due to reciprocity. Cannot register auto until this is resolved. Refuse to pay over 1,600 more in sales tax when Nevada stated that I should just be liable for the difference between the two tax rates-8.25(CA) and 7.75(NV). Apprx 46.00 owed in difference.

Answer: Since you live in CA, you will have to pay the CA sales tax. There's no way around that. You would only pay the NV tax if you register the vehicle there. Just get a temp NV tag to drive home on and pay the taxes in CA when you register the vehicle. If you do pay the NV tax, CA will give you a credit for the tax actually paid. You will have to make up the difference. CA will "net out" the sales tax on sales by licensed CA dealers that involve a trade-in. They won't net out the sales tax on a purchase from out of state.

I would trust what CA is telling you before I'd EVER trust what a car dealer in ANY state tells you! Those scumbags will say ANYTHING to get the sale in many cases. Do NOT be suckered by them!

UNLV: 'No clear signal' on direction of Las Vegas economy

The Las Vegas economy remains at a standstill and shows no sign of improving, according to an analysis from UNLV economists. The Center for Business and Economic Research at UNLV released its Index of Leading Economic Indicators for Southern Nevada.

Should drugs, prostitution, homosexuality be LEGAL? (W/ Christian Commentary)

Question: Do you think that the time has come for tax cuts in Britain to stimulate the economy?

Answer: I don't live in Brition but here in the US, when we did, it helped the economy a lot. Believe it or not, after we cut taxes, the national debt dropped more than predicted. Its basic econonics, you stop taking people's money, they either invest the extra or spend it. They buy more things so you genertae revenue (sales tax). The more money your citizens have in thier pockets, the better the economy will be.

Have Your Say

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How To Stimulate The Economy; $300 Billion In Tax Cuts; How To end The Recession

Question: why do tax cuts stimulate the economy?

Answer: I guess, but I'm drowning, and monkeys in lifegaurd suits are throwing me anvils.

Gov. Bobby Jindal plans targeted cuts to budget

Instead, he said, he will push for more targeted reductions and ask state agencies to eliminate low-performing programs as the administration tries to balance the budget amid a 2010-11 shortfall expected to top $1 billion.

Myth: Tax cuts stimulate the economy; government spending does the opposite.