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Impact of Federal Tax Cuts on Entrepreneurs

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Will Federal tax cuts for entrepreneurs stimulate growth and investment in new ventures?

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Solution Summary

This solution discusses the impact of federal tax cuts on business owners and their tendency to stimulate growth and or investment in 281 words.

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While there is no way to determine whether any individual company will invest in new ventures in the future based on a federal tax cut, that is the basic idea when talking about trickle down or supply side economics. This economic theory became the US policy during the Reagan presidency when he pushed this idea in order to achieve a tax break for the wealthy. In theory, if ...

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