“…….Normal thinking people understand that cutting taxes on business will increase profits, which will be plowed back into the business for expansion and upgrades, which results in the need to hire more employees and contractors, which compounds because those employees and contractors have more money to spend, which increases demand and businesses expand to meet the demand, which results in more taxes being paid by more people, even if the tax rate is lower…..”.So based on that simplistic reasoning, the economy should have been blooming in 2008 after the Bush tax cuts. But rather it was the most disastrous financial crisis since the Great Depression.
“…….Normal thinking people understand that cutting taxes on business will increase profits, which will be plowed back into the business for expansion and upgrades, which results in the need to hire more employees and contractors, which compounds because those employees and contractors have more money to spend, which increases demand and businesses expand to meet the demand, which results in more taxes being paid by more people, even if the tax rate is lower…..”.So based on that simplistic reasoning, the economy should have been blooming in 2008 after the Bush tax cuts. But rather it was the most disastrous financial crisis since the Great Depression.