| Norris2k said:
Your question is not even the question. Lowering taxes would benefit to the economy, that's a fact I believe nobody discusses about. It lowers the break even point for businesses, increases profits for companies, and it translates into more investment, employment, and business opportunities. |
I discuss it. 
It really depends on the situations. In some situations can the tax cut have the effect you describe. In others the businesses simply gain more profit but have no incentive to reinvest the gained profits. So no more jobs. Instead the owners could just save the money. On the other hand the government would cut back public spending because of decreased inflow of money. So the market would be drained of money. This could have a domino-effect, the loss of money in the market could make some businesses reduce their staff (because of the loss of demand), so these people would loose income and have less money to spend, so the market would even lose more liquid money and so on.
The best stimulant to the economy is having more money in the hands of people who instantly spend it. A pretty secure bet in this direction is more money for the poor, because they pretty much always have reasons to spend more money if they would have it.
