Tax rebates? Whats the point?

[Yazman]

What exactly is the point of a tax rebate? It seems like something that, in theory, I am shockingly against. While in reality I will gladly accept one as I need the cash, I do not agree with having such a system. Where do the rebates come from?

If money earnt by citizens is sent to the state in order to prop it up financially then why, logically, would the state give it back? How can services be funded if the money used to pay for them is given back to the source? Or do these rebates come from the "surplus" generated?

Maybe I'm not making a whole lot of sense here, but oh well.

[cyu]

It's just another form of Keynesian economics. You can either have the government print / borrow money to spend directly, or you can have tax cuts (or some combination). If you follow through with Keynesianism, then you wouldn't want to cut spending - it could be maintained by printing / borrowing more. See also "quantitative easing"...

While it gets money flowing in the economy again, Keynesianism is just restoring the economy to its old state, with capitalists still remaining in economic and political control.

[Yazman]

Ahhh ok, thanks cyu. I will look into this, I've been doing a little bit of research on Keynesian economics lately but have only really just started.. need to dig a bit deeper.