Opinionated Response to Peer Comment Essay Example | Topics and Well Written Essays - 250 words

Opinionated Response to Peer Comment - Essay Example In response, the government implemented many tax rate reductions to appease the people’s rising disgruntlement (Friedberg, 2011). Using Keynesian economic principles, tax cuts will generate more purchasing power. With lesser taxes, the people will have more money to buy good and services. With more tax cuts, the people’s demand for products and services increases. Consequently, with more demand, the stores and other suppliers can sell more goods. With more goods sold, the government can collect more taxes. Basically, the overall effect on the government’s tax collections seems the same (Mankiw, 2008). With more sales, the companies pay more taxes to the government. With more demand for products and services, the factories hire more workers to produce the highly salable products and deliver more services. With more employees, the government can collect more salary-based taxes. As proof, During the George W. Bush Presidency, the president was beset with an economic depression. To rehabilitate and improve the economic depression, President George W. Bush spearheaded permanent tax cuts. As expected, the President Bush Tax cuts increased the public’s purchasing power, rejuvenating the ailing economy (Mankiw, 2008). Getting the substance of the above discussion, the 1940s and later years’ tax cuts met the people’s increasing requests to reduce the high tax rates. The study indicates the importance of implementing the people’s demand for lower tax rates. The study proves that the 1940s and later years’ tax cuts benefit many parties, especially the United States government. Without a doubt, the comment stating the benefits have become popular in the United States during the 1940s when the United States Congress passed tax breaks for some business entities is