Glad to... and I should have been more specific to begin with. Across the board reductions in the tax rates are legitimate tax cuts. The first time home buyers tax credit and the Cash for Clunkers tax credit are both examples of subsidies via the tax structure.
Two major reasons, subsidies distort the market (encouraging further mal-investments) and they do not stimulate the entire economy.
These subsidies are industry specific, only those specific industries will be "stimulated" by the tax credits offered to the consumer.
Across the board tax cuts stimulate the entire economy at all levels and in all industries.
Subsidies and bailouts do not stimulate the entire economy, it only props up specific failing areas of the economy with deficit spending.
Why is the federal government allowed to run a deficit and perpetually expand on our national debt but the states are not?
The answer to that question is very important.
That is a fallacy of false dilemma.
Why do you believe that raising taxes increases revenue and lowering taxes would reduce them?
Why do you believe that important (as opposed to redundant or unnecessary) programs would have to be cut?
Why do you believe that cutting even "important" programs would be necessarily be a bad thing?
Again, I must point out that Government has no money of its own to "inject" into the economy, any money that it puts into the economy must first be taxed away from the current economy, or borrowed against (printed [with the potential of causing inflation] with the idea of raising taxes later) future economies.
This is a bare assertion fallacy and a Fallacy of Necessity.
Substituting consumer demand with government spending does not result in true economic stimulus and it retards recovery. The rise in GDP will cause the illusory effect of making it appear as though the economy is gaining strength, or has ceased in its decline, but this illusion only lasts as long as the government spending continues.
The entire time the illusion is allowed to continue, capital investments are likely to be misdirected because of the illusion and the inflated credit markets and currency create a bubble in the capital markets. If you thought the bursting of the housing bubble was a catastrophe, it will look like a mildly rainy day compared to the fallout from rupturing a capital market bubble.
When government pumps money into a failing industry in hopes of keeping it from collapsing, you recognize this government action as a bailout. Yet... When government pumps money into the economy in hopes of keeping it from collapsing, you do not recognize this government action as a bailout but a stimulus.
