#Budget2019 is a great time to remember that there's no good evidence that tax cuts directly boost the economy. A short thread #auspol #Budget19pic.twitter.com/3OTDbPvJKS
So what if we look at the evidence, countries that have actually cut taxes, and see what's happened? Generally, the results aren't sudden economic growthpic.twitter.com/kb5z2WYGTh
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Again THIS IS COMPLEX Sometimes, the economy grows after tax cuts Sometimes it doesn't
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Which begs the question: why cut taxes? Because while the impact on the broader economy is uncertain, we do know one thing that tax cuts will do: reduce government spending
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Yes, cuts might ~eventually~ bring in more cash, maybe, but in the short term they will absolutely, definitely, 100% reduce the amount of money the government has to spendpic.twitter.com/JUgpaurbYB
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This means that the government either has to borrow money - not ideal - or cut programs Programs like disability support, pensions, education
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And something that's ALWAYS missed by people who don't want to pay their taxes is that these programs also have a positive impact on the economypic.twitter.com/Lt3lI4hHfN
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It turns out if you educate people, give them appropriate support in their lives and good healthcare, they often do better economically THIS IS NOT A SURPRISE
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It's also worth noting that the positive effect from tax cuts has demonstrable diminishing returns as wealth increases This means that even if tax cuts are good they are less good for people with more moneypic.twitter.com/fjQN2edNmL
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So even if we do want to cut taxes, the best people to do it for are the middle/low income earners TAX CUTS FOR THE RICH MAKE LITTLE ECONOMIC SENSE
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This has been my relatively short thread on tax cuts Remember: it's absurdly complicated, don't believe anyone who tells you they can predict anything with any certainty because they're wrong
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Some references: https://theconversation.com/there-isnt-solid-research-or-theory-to-support-cutting-corporate-taxes-to-boost-wages-92031 … https://theconversation.com/infographic-budget-2019-at-a-glance-114289 …https://theconversation.com/do-tax-cuts-stimulate-the-economy-more-than-spending-80950 …
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