Description Case Study Assignment #2 Instructions The Tax Cut of 1964 This case highlights the use ...

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Description Case Study Assignment #2 Instructions The Tax Cut of 1964 This case highlights the use of deficit spending created by stimulus tax cuts. Apply the assigned readings in weeks 3 and 4 (some readings from weeks 1 and 2 may also be useful to Q. 2 and 3 and the case facts to answer the following questions raised by the case. Some outside research is also acceptable. Answer all questions and subparts separately. The paper should be a minimum of 5-7 pages. See the syllabus for drafting instructions. Only the team presenting should prepare a power point presentation. Question #1: As demonstrated in the course readings, President Kennedy referred to the dangers of deficit spending triggered by tax cuts a “myth.” What is deficit spending? How do tax cuts trigger deficit spending? Does the use of tax cuts to trigger deficit spending actually result in economic stimulus and growth? Is there a negative economic impact? Question #2: The case compares the Kennedy administration, the (New Economics), to the orthodoxy of the Eisenhower administration, (Stimulate the Economy Through Fiscal Policy). Explain the economic and tax differences in both philosophies. Which one does the team think is a better approach and why? Question #3: What is meant by the Keynesian Revolution? How does the Keynesian philosophy tie into tax policy? Does the team think that Keynesian philosophy is a viable tax and economic policy and why? Question #4: Should the government be restricted in its efforts to cut taxes unless there are also spending cuts? Is there a better way to pay for tax cuts instead of incurring more deficits?