Is the $150m tax cut for businesses a prudent idea by Obama?

India
January 15, 2009 1:53pm CST
I don't think it is.Instead of he should invest more in infrastructure so that the unemployment crisis can be scaled down to some extent.According to Romer/Bernstien report the unemployment percentage,even with the stimulus plan,would be around 6%.So inorder to cushion the impact spending should be increased risking the increase in fiscal deficit.What do you think about the tax cuts for businesses?
1 response
@rosdimy (3926)
• Malaysia
16 Jan 09
If we look from one angle a tax cut for businesses makes some sense. With the extra money businesses should be able to reduce or at least maintain the prices of goods. There would be less need for them to downsize or reduce wages. This would in turn encourage spending and the cycle of growth goes on. In the late 90's recession the Prime Minister of my country embarked on a different path towards economic recovery. His decision earned criticisms from all over the world. But the country survived with strong fundamentals. In the present economic crisis the country's economy is still going strong compared to many other countries. For example before Christmas last year all government servants received their year end bonus. Naturally most spent the money on shopping. all the best, rosdimy
• India
16 Jan 09
I do agree with your attitude,but still I think in the present economic scenario every dollar spent is far more important than every dollar lost from tax cuts,thanks for the response