Tax cut on business profits and interest income

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You have just been appointed as the economic advisor to the president, who wants to fulfill his campaign promise of a tax cut for all deserving taxpayers. Two proposals are on the table. The first proposal suggests elimination of income tax for people who earn less than $50,000 per year. The second proposal advocates a 15% tax cut on business profits and interest income. Which tax cut do you support and why?

Reference no: EM131088801

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