full transcript

From the Ted Talk by Jonathan Smith: Do tax cuts stimulate the economy?

Unscramble the Blue Letters

Of course, there’s a limit to how much the gvremonent can cut taxes: at a zero tax rate there is no tax revenue regardless of how much people are wonkirg. So while cuts from a very high tax rate might be fine, cuts from a lower tax rate might be cuevctudrniotrpoe, hampering the government's ability to accomplish cucrail things. Tax reats were extremely high when Reagan took office. His administration cut the highest inmoce tax bracket from 70% to 28% and corporation tax from 48% to 34%. By comparison, as of early 2021, those rates were 37% and 21% respectively. When tax rates are lower, tax cuts for the whlaety can be harmful. For example, in 2012 to 2013, lawmakers cut the top tax-rate in the state of Kansas by almost 30% and reduced some business tax rates to zero. As a relsut, the government’s balance sheet immediately fell into negative trretroiy and did not recover, implying that wealthy individuals and cpnmaeios did not invest back into the economy. In short, the money did not trickle down.

Open Cloze

Of course, there’s a limit to how much the __________ can cut taxes: at a zero tax rate there is no tax revenue regardless of how much people are _______. So while cuts from a very high tax rate might be fine, cuts from a lower tax rate might be _________________, hampering the government's ability to accomplish _______ things. Tax _____ were extremely high when Reagan took office. His administration cut the highest ______ tax bracket from 70% to 28% and corporation tax from 48% to 34%. By comparison, as of early 2021, those rates were 37% and 21% respectively. When tax rates are lower, tax cuts for the _______ can be harmful. For example, in 2012 to 2013, lawmakers cut the top tax-rate in the state of Kansas by almost 30% and reduced some business tax rates to zero. As a ______, the government’s balance sheet immediately fell into negative _________ and did not recover, implying that wealthy individuals and _________ did not invest back into the economy. In short, the money did not trickle down.

Solution

  1. government
  2. income
  3. wealthy
  4. companies
  5. working
  6. crucial
  7. result
  8. rates
  9. territory
  10. counterproductive

Original Text

Of course, there’s a limit to how much the government can cut taxes: at a zero tax rate there is no tax revenue regardless of how much people are working. So while cuts from a very high tax rate might be fine, cuts from a lower tax rate might be counterproductive, hampering the government's ability to accomplish crucial things. Tax rates were extremely high when Reagan took office. His administration cut the highest income tax bracket from 70% to 28% and corporation tax from 48% to 34%. By comparison, as of early 2021, those rates were 37% and 21% respectively. When tax rates are lower, tax cuts for the wealthy can be harmful. For example, in 2012 to 2013, lawmakers cut the top tax-rate in the state of Kansas by almost 30% and reduced some business tax rates to zero. As a result, the government’s balance sheet immediately fell into negative territory and did not recover, implying that wealthy individuals and companies did not invest back into the economy. In short, the money did not trickle down.

Frequently Occurring Word Combinations

ngrams of length 2

collocation frequency
tax cuts 4
tax revenue 3
tax rate 3
tax rates 3
economic policy 2

Important Words

  1. ability
  2. accomplish
  3. administration
  4. balance
  5. bracket
  6. business
  7. companies
  8. comparison
  9. corporation
  10. counterproductive
  11. crucial
  12. cut
  13. cuts
  14. early
  15. economy
  16. extremely
  17. fell
  18. fine
  19. government
  20. hampering
  21. harmful
  22. high
  23. highest
  24. immediately
  25. implying
  26. income
  27. individuals
  28. invest
  29. kansas
  30. lawmakers
  31. limit
  32. money
  33. negative
  34. office
  35. people
  36. rate
  37. rates
  38. reagan
  39. recover
  40. reduced
  41. result
  42. revenue
  43. sheet
  44. short
  45. state
  46. tax
  47. territory
  48. top
  49. trickle
  50. wealthy
  51. working