The Instigator
magic123
Pro (for)
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The Contender
PhoenixWrong
Con (against)
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0 Points

Lowering taxes puts money back in the economy and stimulates economic growth.

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Voting Style: Open Point System: 7 Point
Started: 5/26/2014 Category: Politics
Updated: 2 years ago Status: Post Voting Period
Viewed: 422 times Debate No: 55473
Debate Rounds (5)
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magic123

Pro

Talking about lowering taxes is more about sounding good for politicians than actually growing the economy. Jobs are not created but lost. When businesses are taxed so much they do not have enough revenue to expand, jobs are lost. This is class warfare. When the job creators are taxed enough they stop hiring people. 10% of people pay 70% of the taxes yet somehow they don't pay their fair share. Why don't they pay 100% of taxes?
PhoenixWrong

Con

"A tax cut does not necessarily help or hurt an economy. You must consider what the revenue from those taxes is being spent on before you can determine the effect the cut will have on the economy." (1),

"A country also needs infrastructure to have a high level of economic activity. Much of this infrastructure cannot be adequately provided by the private sector, so governments must spend money in this area to ensure economic growth."(2).

To sum it all up, the effect of tax cuts on the economy can only be determined by what the government is spending it's tax dollars on. For instance, if a government spends it's money on small business grants, then that would increase the economy by the businesses who received the grants creating more jobs and more production. A tax cut would only ensure that the smaller businesses have no chance in providing either jobs or production(assuming that the government spends money on small business grants). In that scenario, the government would be spending tax dollars efficiently and would be increasing the economy as a result. Whereas, a tax cut would indeed increase the economy to a degree, but nowhere near as much as if the government helped spring up jobs through small businesses. So, in short, the economy would benefit from a tax hike, assuming that the government spends tax dollars correctly, rather than a tax cut.

(1) http://economics.about.com...(1st paragraph)
(2) http://economics.about.com...(4th paragraph)
Debate Round No. 1
magic123

Pro

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PhoenixWrong

Con

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Debate Round No. 2
magic123

Pro

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PhoenixWrong

Con

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Debate Round No. 3
magic123

Pro

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PhoenixWrong

Con

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Debate Round No. 4
magic123

Pro

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PhoenixWrong

Con

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Debate Round No. 5
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