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Will Tax Cut Extension Help the Economy - or Are There Better Options

By
Real Estate Agent with Real Estate Teams LLC

Your Distressed Property and Short Sale Expert in Maryland

The Congressional Budget Office (CBO), amomg other authorities, extending all Bush tax cutsd will only give aa small bang fo the buck - 10 to 40 cents on the dollar.

Because most tax cut dolllars go to the rich, who do not spend as much of their income as lower income earners.

The CBO said that the tax cut was at the bottom of 11 possible stimulus policies recently examined.

More effective policies included: using the money to help the states; extensions of unemployment unsurance; tax benefits favoring job creation.

What are your thoughts?

Will the tax cuts help lower foreclosures and short sales by giving home owners a bit more money to pay bills?

We here in Frederick Maryland sure hope so.

 

 

Dennis

www.MarylandDistressedProperties.com

www.Frederick-MontgomeryCountyHomes.com

 

Jon Budish
Resident Realty - Fort Collins, CO

Bottom line; taxes weren't cut, they remain unchanged.

Dec 27, 2010 01:37 PM
William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

It's an albatross, Dennis.

Note that the economy didn't grow over the last several years, while the Bush tax cuts were in place. It would make more sense to have let them expire for the upper echelons of tax payers, and then they would have to utilize their money in ways that would reduce their overall tax burden, i.e. job creation, as it would be one of the few ways that they could save on taxes...

Dec 27, 2010 01:45 PM
Anonymous
Dennis Helmstetter

Seems that when to much wealth becomes concentrated in tooo few hands, an economy suffers, even collapses.

Rome did it, and others, best cases are seen in some African countries today - Zimbabwe come to mind? A healthy economy a few decades ago run into the ground by a kleptocracy, whereas South Africe is doing well

Dec 27, 2010 11:36 PM
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