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Giving small businesses a tax break may create some expansion or it might mean the bosses take it as extra wages.
The downside is tax cuts have to be matched by tax cuts, borrowing or increases in other sectors. Tax cuts = job losses.
So how can small businesses be encouraged by Government to expand?
Here's an idea. Make US produced Solar Panels subject to a discount at the tills. So more consumers will switch to them and move away from traditionally generated electricity to solar power.
Put $1,000 on the cost of a new gas driven car and a discount of $1,000 on an electrical or hybrid car. The $ amount can be adjusted for effectiveness.
Government aided or funded projects in new technology.
Taxing imported goods more.
Tax cuts bring $0 growth we have seen the proof of that so many times it's amazing people don't laugh when it's put forward. Because for every $10,000 cut a job is lost, (adjust the $10,000 it was an example) and the $10,000 spent by a tax payer doesn't result in 1 job created.
While Americans only vote for big spending campaigners, or motivated by short term greed, the system will never change. And as Robbie points out the system is at fault.
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