Bush tax cut = tax shift

When you buy something, you usually have to pay the tax. Maybe you were thinking, it would be nice if we didn’t need to pay so much tax. It seems like the Bush Administration is trying to do a “nice” thing by cutting taxes. Actually, tax cut are not always a good thing. Our financial aid, medical cares and various other services all come from tax income. The Bush administration cut tax while spending a lot of money on things like the war in Iraq. They made a huge deficit which will be a burden on low and middle income people. And his tax cut policy didn’t stimulate consumption too much, because most of the tax that he cut was for high income people. But high income people will not spend more money because of they get a little bit more money from the tax cut. However, if Bush cut more tax for low income people, they will have more willingness to spend more money. For more information about how Bush Administration shift tax cut, click: http://www.faireconomy.org/press/2004/ShiftyTaxCuts_pr.html Tax cut also increase the interest rate, which restrain the willingness of investment on both domestic and foreign markets. This will make the value of the dollar increase. So the foreigners tend to buy less American products, which lead the deficit in international trade.