Kaelyn's mother, Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins from Judy's home every day). Since Judy is a relative, Kaelyn made sure, for tax purposes, to pay her mother the going rate for child care ($6,460 for the year). What is the amount of Kaelyn's child and dependent care credit if her AGI for the year was $37,600

Answers

Answer 1

Answer:

Kaelyn's child and dependent care credit is:

$2,100.

Explanation:

a) Data and Calculations:

Going rate for child care for twins = $6,460

Maximum allowed = $6,000

Kaelyn's AGI for the year = $37,600

Percentage of child and dependent care credit = 35% of the allowed maximum for two children

b) The maximum qualified child and dependent care expense is $6,000 ($3,000 each) that Kaelyn can claim for the twins.  Therefore, her child and dependent care credit is 35% of $6,000, which equals $2,100.


Related Questions

Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 20X1, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 20X1 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 20X1. At the end of 20X1, the fair value of the Able stock was $18,000 and the fair value of the Baker stock was $28,000. The stocks were purchased for short-term speculation prior to the effective date of the change in accounting rules for equity investments. Perry owns 10% of each company. Perry should record the receipt of the Baker dividend as

Answers

Answer:

Debit Cash $2,400: Credit Dividends receivable $2,400

Explanation:

Date               Account Titles and Explanation     Debit    Credit

31 Dec 20X1   Cash                                                $2,400

                               Dividend receivables                            $2,400

                       (Record of the receipt of the Baker dividend)

On January 1, a company issues bonds dated January 1 with a par value of $200,000. The bonds mature in 3 years. The contract rate is 4%, and interest is paid semiannually on June 30 and December 31. The market rate is 5%. Using the present value factors below, the issue (selling) price of the bonds is:

Answers

Answer:

b. $194,492

Explanation:

Note: The  present value factors is attached as picture below

Multiple Choice $205,607.  $194,492.  $200,000.  $22,032.  $172,460.

00,000

Calculation of Bond issue price                        

                                                           PV factor at 2.50%

Pv value of bond               200,000             0.8623                 172,460

Pv of interest at 2%, 6       4,000                  5.5081                  22,032

semi annual installment

Present value of the Bond                                                        $194,492

The following information is available regarding Grace Smit's capital account in Enterprise Consulting Group, a general partnership, for a recent year: Beginning of the year balance $ 30,000 Share of partnership income $ 10,500 Withdrawals made during the year $ 6,800 What is Smit's partner return on equity during the year in question

Answers

Answer:

Return on equity = 32.967%

Explanation:

Given:

Beginning balance = $30,000

Share of partnership = $10,500

Withdrawal = $6,800

Find:

Return on equity

Computation:

Ending equity = Beginning balance + Share of partnership - Withdrawal

Ending equity = 30,000 + 10,500 - 6,800

Ending equity = $33,700

Return on equity = Share of partnership / Average equity

Return on equity = 10,500/(30,000 + 33,700)/2

Return on equity = 10,500/31,850

Return on equity = 32.967%

A firm conducted a market analysis and determined that a new wo
will remain the same, what change should occur initially to maxim
A)
The firm should increase output.
B)
The firm should decrease output.
O
The firm should keep productivity the same.
D)
The firm should raise costs other than labor.

Answers

The answer is A the firm should increase output!!!!

Which skills are common to Education and Training cluster? skills in math and finance leadership and teaching skills knowledge of instructional design and psychology knowledge of school policies maintenance of classroom discipline communication skills for dealing with students, families, and coworkers

Answers

Answer:

Leadership and teaching skillsKnowledge of instructional design and psychologyKnowledge of school policiesMaintenance of classroom discipline Communication skills for dealing with students, families, and coworkers

Explanation:

The Education and Training cluster comprises teachers, administrators, and professional student support staff. They work in schools and other educational institutions. Professional in the cluster help students achieve their educations objectives by helping them in academics and providing psycho-social support.

The skills required in this cluster revolve around effective teaching, school administration, and the ability to create good working relationships with students, colleagues, and other stakeholders.

Answer:

The correct answer is A,B,C,E,F

Explanation:

plz mark brailiest i really need it

The Monster Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed in outlying regions. The company has annual sales of $626,600. Cost of goods sold average 36 percent of sales and the profit margin is 4.9 percent. The average accounts receivable balance is $35,100. On average, how long does it take the company to collect payment for its services

Answers

Answer:

20.45 days

Explanation:

Calculation for how long does it take the company to collect payment for its services

Days in receivables = 365 days/($626,600/$35,100)

Days in receivables = 365 days/17.85

Days in receivables=20.45 days

Therefore how long does it take the company to collect payment for its services is 20.45 days

Jawwal Research & Development has been going through a rough patch lately. Turnover has been high and employee morale is at an all-time low. Though employees and competitors hold management responsible for the decline, the CEO does not let the managers go or change the management style. Which of the following could explain this attitude?
Select one:
a. The CEO is unresponsive to the criticisms from stakeholders.
b. The CEO holds the omnipotent view of management, which asserts that external factors have a significant effect on performance outcomes.
c. Because the organization has a "take-charge" management style, the employees are responsible for organizational policies.
d. The CEO holds the view that managers have only a limited role in organization success or failure.

Answers

Answer:

d. The CEO holds the view that managers have only a limited role in organization success or failure.

Explanation:

The CEO of Jawwal Research & Development subscribes to the symbolic view of management. Under the symbolic view, the organization's success or failure is caused by external forces beyond the managers' control. The symbolic view is that the whole of the organization is not in the managers' control.

The CEO of Jawwal Research & development believes that the manager's influence is limited by external factors such as technology, government policies, the economy, competitors, and industry conditions. The symbolic view contrasts with the Omnipotent view, which believes that managers are directly responsible for an organization's failure or success.

On July 1, 2020, Preston Tucker and Sons AutomobileCompany acquired real estate to construct a small combination office and warehouse building. Tuckerpaid $125,000 cash as a down payment and issued a $375,000 note payable; the note is due in 3 years with an interest rate of 6.75%. An old warehouse on the property was demolished at a cost of $21,800; the salvaged materials from the warehouse were sold for $1,500. Additional expenditures before construction began, included: $3,100 for attorney's fee pertaining to the real estate purchase, $7,500 for real estate broker's fee, $9,100 architect's fee for designing plans for the new office and warehouse, and $16,000 to put in driveways and a parking lot. Required (a) Determine the amount to be reported as the cost of the land. (b) For each cost not used in part (a), indicate the account to be debited.

Answers

Answer:

Preston Tucker and Sons Automobile Company

A. Cost of the land = $530,900

Building account:

Architect's fee for designing plans = $9,100

C. Driveways and Parking Lot:

Driveways and parking lot = $16,000

Explanation:

a) Data and Calculations:

Down payment = $125,000

Note payable = $375,000

Total = $500,000

Interest rate of note payable = 6.75%

Cost of demolishing warehouse = $20,300 ($21,800 - 1500)

Attorney's fee for real estate purchase = $3,100

Real estate broker's fee = $7,500

Architect's fee for designing plans = $9,100

Driveways and parking lot = 16,000

Cost of the Land:

Payment for the land =        $500,000

Demolishing old warehouse   20,300

Attorney's and broker's fee     10,600

Total cost of the land =       $530,900

Building account:

Architect's fee for designing plans = $9,100

Driveways and Parking Lot:

Driveways and parking lot = $16,000

Which of the following scenarios is an example of irrelevant media? A. Graphics that need to be split up and appear on two pages. B. Imagery that matches the content but is too large. C. An image that does not match the text in any manner. D. A video that is inappropriate because it is too long to show in a particular situation.​

Answers

I think the answer is C but don’t quote me on that

Irrelevant media includes, for instance, an image that does not correspond to the content. Therefore, option C in the given question is correct.

What is the meaning of Irrelevant?

"Irrelevant" refers to something that is not connected or related. While they might not be the best media uses, the additional examples are not necessarily unimportant.

When something is irrelevant, it has no bearing on the topic. People no longer relate to a rock star's music or even listen if they become irrelevant. Nobody is thinking or speaking about it at the moment.

It doesn't matter if they are too big or unimportant because we can still learn a lot of useful knowledge from them. However, if something—an image, text, or anything else—does not fit the condition, that is unquestionably an example of irrelevant media.

Hence, In this case, the correct answer is option C.

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Jacobs Company has warrants outstanding, which are selling at a $3.00 premium above intrinsic value. Each warrant allows its owner to purchase one share of common stock at $26. If the common stock currently sells for $30, what is the warrant price? (Round your answer to 2 decimal places.) $11.00 $7.00 $8.00 $10.00

Answers

Answer: $7.00

Explanation:

Based on the information provided in the question, the warrant price would be calculated as the addition of the premium which is above the intrinsic value and the paid in excess of the common stock. This will be:

= $3 + ($30 - $26)

= $3 + $4

= $7.00

Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to: Group of answer choices determine where the funding will come from look for customers create a business plan find the idea for his business choose a form of business organization

Answers

The correct answer is letter "E": find the idea for his business.
Explanation:
There are no set of steps or books that could determine when entrepreneurs could start a business or not. Most ventures are engaged by recognizing an opportunity and matching it with strengths individuals have that could make the plan work. Proper assessment and partnership are vital in this stage for the venture not to be affected by the initial challenges of entering into a market.
If Arnold has found he has an entrepreneurial spirit, then, he should spot different opportunities in the market for him to take one and develop a business idea.

Consider the following information on returns and probabilities: Invest 1/2 of your money in Asset A and 1/2 in Asset B. State Probability A B Boom .25 12% 4% Bust .75 6% 18% What is the expected return for the portfolio

Answers

Answer: 11%

Explanation:

Find the expected return in both Booms and Busts;

0.5 of your money is in Asset A and Asset B each.

Boom;

=  (0.50 * 12%) + (0.50 * 4%)

= 8%

Bust

= (0.50 * 6%) + (0.50 * 18%)

= 12%

Portfolio expected return = (0.25 * 8%) + (0.75 * 12%)

= 11%

why Dell usually reacts more quickly and more substantially to pricing, product design, and advertising decisions made by Hewlett-Packard and Gateway than when these same types of decisions are made by Apple Computer.

Answers

Answer and Explanation:

Since in the question it is mentioned that the dells reacts more quickly and sustainable with the price, design of the product, etc as compared with the apple computer

It is because of that the apple is the less subsitute for dell also the dell Hp and gateway all make the windows machines

Therefore it reacts more quickly

hence, the same is relevant

(LO 8) Maxim manufactures a hamster food product called Green Health. Maxim currently has 18,500 bags of Green Health on hand. The variable production costs per bag are $3.50 and total fixed costs are $27,000. The hamster food can be sold as it is for $10.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 18,500 bags of Premium Green and 4,700 bags of Green Deluxe, which can be sold for $9 and $7 per bag, respectively. Assuming Maxim further processes Green Health further into Premium Green and Green Deluxe, revenue from the two products would be:

Answers

Answer:

$ 199,400

Explanation:

Calculation for what the revenue from the two products would be:

VENUE IF PROCESSED FURTHER:

Premium Green $166,500

(18,500 bags * $9 per bag)

Green Deluxe

(4,700 bags * $7 per bag) $32,900

Total revenue if processed further $ 199,400

Therefore Assuming Maxim further processes Green Health further into Premium Green and Green Deluxe what the revenue from the two products would be is $ 199,400

Identify the statement that characterizes the Age Discrimination in Employment Act. Multiple Choice It permits an employer to reduce the fringe benefits to all employees over 40. It outlaws making employment decisions based on a person's age being over 40. It permits companies to lay off older workers when the economy is slow. It recommends early retirement incentive programs wherein employees agree not to sue the company for ageism.

Answers

Answer:

The statement that characterizes the Age Discrimination in Employment Act is:

It outlaws making employment decisions based on a person's age being over 40.

Explanation:

The idea behind the Age Discrimination in Employment Act (ADEA) is to forbid age discrimination against people who are age 40 or older.  Following the frequent practice of using arbitrary age limits to make decisions about employees, the ADEA was passed by Congress in 1967.  The purpose of the law was to reduce the damaging effects of the long-term loss of job skills affecting the older citizens of the population.

Describe how the business infrastructure should be designed so that employees will be able to continue to perform business functions in the event of a disaster (e.g., storm, hurricane, or earthquake) that destroys or makes it impossible to access the buildings.

Answers

Answer:

It should be switched to a fully digital firm which is also called as an e-business.

With the growth of technology ( Cloud Computing, Mobile Digital Platforms and Internet of things )

sometimes using Information Systems, and Information Technology can make the company get higher revenue. but other times not because it needs to achieve these in order to use Information Systems:

choose the right business model.choose the right software for the business.invest in the complementary assets ( organizational and managerial capital )

i don't know if that answers your question or not but i hope it does help you. have a good day and a lovely year.

jones company has a target capital structure of 40% debt, 10% preferred stock, and 50% common equity. The company's after-tax cost of debt is 5.1% its cost of preferred stock is 6%, its cost of retained earnings is 13.6%, and its cost of new common stock is 22.9%. The company stock has a beta of 1.7 and the company marginal tax rate is 40%. What is the company's weighted average cost of capital if retained earnings are used to fund the common equity portion

Answers

Answer:

8.624%

Explanation:

Bond Kd = 5.1%

Preferred stock Kp = 6%

Retained earnings Ks = 13.6%

News shares Kn = 22.9%

Tax rate = 40%

WACC = (0.40*(1-t)Kd) + (0.10*Kp) + (0.50*Ks)

WACC = (0.40*(1-0.40)*5.1 + 0.10*6 + 0.50*13.6

WACC = 0.40*0.60*5.1 + 0.60 + 6.8

WACC = 1.224 + 0.60 + 6.8

WACC = 8.624%

Cougar Athletics is soliciting bids on a 3-year contract to produce 5,000 t-shirts per year to be given away at athletic events. You have decided to bid on the contract. It will cost you $4 per shirt in variable costs (buying plain t-shirts and paying an employee to imprint them) and $8,000 per year in fixed costs. A t-shirt printing machine will cost $17,500. The machine will be depreciated to zero over its 3-year life and it will not have any salvage value. There are no net working capital implications for the project. If your tax rate is 21% and your required return on this project is 12%, how much would you bid for the contract? State your answer as the annual sales amount (to 2 decimal places, $XX,XXX.XX), not the per-unit price. Write up your solutions by hand and email them to me after the exam (do NOT send a spreadsheet).

Answers

Answer:

$7.1345 per shirt

Explanation:

depreciation expense per year = $17,500 / 3 = $5,833

initial outlay = -$17,500

cash flow year 1 = [(5,000X - $20,000 - $8,000 - $5,833.33) x 0.79] + $5,833.33 = 3,950X - $20,895

cash flow year 2 = [(5,000X - $20,000 - $8,000 - $5,833.33) x 0.79] + $5,833.33 = 3,950X - $20,895

cash flow year 3 = [(5,000X - $20,000 - $8,000 - $5,833.33) x 0.79] + $5,833.33 = 3,950X - $20,895

$17,500 = (3,950X - $20,895)/1.12 + (3,950X - $20,895)/1.12² + (3,950X - $20,895)/1.12³

$17,500 = 3,526.79X - $18,656.25 + 3,148.92X - $16,657.37 + 2,811.53X - $14,872.65

$17,500 = 9,487.24X - $50,186.27

$67,686.27 = 9,487.24X

X = $67,686.27 / 9,487.24 = $7.1345 per shirt

What is the form of payment, form of acquisition, acquisition vehicle, and post-closing organization?

Answers

Answer:

Check explanation section.

Explanation:

In order to be able to understand and to solve this problem efficiently one must read the case study which is in the Question's comment section.

So, from the case study it can be shown that in order to make sure that there is increament in equity, the kind of financing that took place is through Borrowing. Hence, the form of payment is through BORROWING.

In order to buy, it has to be done via or through what is called merger or say corporate merger. The form of acquisition is through MERGING.

The post closing organization in the case study is HEINZ. The acquisition vehicle is the fact that something was bought from the Hawks.

Cassini Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. During November 2022, Cassini sells 6,300 subscriptions for cash, beginning with the December issue. Cassini prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end.Prepare the entry in November for the receipt of the subscriptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Credit Debit Nov. SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the adjusting entry at December 31, 2017, to record subscription revenue in December 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Credit Debit Dec. 31

Answers

Answer:

                             Cassini Company Ltd

Date          Account Titles and Explanation      Debit         Credit

Nov 2017   Cash (6,300*$28)                           $176,400

                         Unearned subscription revenue                $176,400

                    (To record the receipts of subscription)

Dec 2017    Unearned subscription revenue    $14,700

                          Subscription revenue ($176,400*1/12)       $14,700

                    (To record the revenue earned)

               

March '18    Unearned subscription revenue     $44,100

                            Subscription revenue ($176,400*3/12)      $44,100

                    (To record the revenue earned)

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. This means that, in order to buy two bananas, this consumer must forgo

Answers

Answer:

1 apple

Explanation:

Since in the question it is mentioned that if a consumer has a budget or income of $12 and she can purchased only two goods i.e. apple or banans and if the price of the apple is $1.50 and the price of banana is $0.75 so if she purchases two bananas so the consumer must forgo the one apple

hence, the same is to be considered

The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, serving containers, napkins, etc.) of $1.90 per sandwich. Sandwiches sell for $2.70 each in all locations. Rent and equipment costs would be $5,400 per month for location A, $5,700 per month for location B, and $5,950 per month for location C. a. Determine the volume necessary at each location to realize a monthly profit of $10,000.

Answers

Answer and Explanation:

The computation of the volume necessary for each location is as follows;

a) Volume required for break even at location A

= ($5,400 + $10,000) ÷ ($2.70 - $1.90)

= 19,250 units

Volume required for break even at location B

= ($5,700 + $10,000) ÷ ($2.70 - $1.90)

= 19,625 units

Volume required for break even at location C

= ($5,950 + $10,000) ÷ ($2.70 - $1.90)

= 19,938 units

The Laffer curve is the curve showing how tax revenue varies as the size of the tax varies.

a. True
b. False

Answers

Answer:

True

Explanation:

The Laffer Curve was developed by Arthur Laffer. Arthur, a supply side economist used this curve to show the relationship that existed between tax rates and also the amount of tax revenue which the government takes or collects. This curve provides an illustration to his argument that sometimes when tax rates are cut there could be increase in total tax revenue.

Therefore the answer to this question is true.

3. Keim, Inc. manufactures baseball gloves that normally sell for $40 each. Keim currently has 1,000 defective gloves in inventory that have $30 of materials, labor, and overhead assigned to each glove. The defective gloves can either be completely repaired at a cost of $25 per glove or sold as is at a reduced price of $18 per glove. Keim would be better off by: a. $3,000 to sell

Answers

Answer:

selling the defective gloves as they are results in a $3,000 higher gain

Explanation:

the manufacturing costs of the defective gloves should be considered a sunk cost since they cannot be recovered:

alternative 1, sell defective gloves = $18 x 1,000 = $18,000 gain

alternative 2, repair the gloves and sell them at normal price = ($40 - $25) x 1,000 = $15,000 gain

alternative 1 (selling the defective gloves as they are) results in a $3,000 higher gain

Moss exchanges a warehouse for a building he will use as an office building. The adjusted basis of the warehouse is $600,000 and the fair market value of the office building is $350,000. In addition, Moss receives cash of $150,000. What is the recognized gain or loss and the basis of the office building?

Answers

Answer:

$0 and $450,000.

Explanation:

Calculation for What is the recognized gain or loss and the basis of the office building

Calculation for the recognized gain or loss

Using this formula

Recognized gain or loss =Amount realized -(Adjusted basis-Realized loss)

Let plug in the formula

Recognized gain or loss= ($350,000 + $150,000) -( $600,000-$100,000)

Recognized loss =($500,000-$500,000)

Recognized loss =$0

Therefore the Recognized loss  will be $0

Calculation for the basis of the office building

Using this formula

Basis of the office building=FMV+Postponed loss

Let plug in the formula

Basis of the office building= $350,000+$100,000

Basis of the office building= $450,000

Therefore the Basis of the office building will be $450,000

Some customer support call center let incoming callers know how long they would be on hold before talking to a service agent. This improves customer experience because: Group of answer choices it lessens the perception of unfairness in waiting in-process waits seem shorter than pre-process waits uncertain waits seem longer than certain waits unoccupied time seems longer than occupied

Answers

Incoming callers' perceptions of unfairness are diminished and a clear expectation is set by communicating the length of their wait time in advance. This enhances the overall customer experience.

What are the abilities in customer service?

Client retention and acquisition are highly dependent on customer service. Companies can increase sales by utilising good customer service. Being empathetic, communicating effectively, and addressing problems are essential components of providing exceptional customer service.

A call centre interview is what?

For businesses, call centres serve clients who have queries, grievances, or suggestions on goods or services. A call centre interview is a chance for you to highlight your problem-solving abilities and show off your capacity to win over clients' trust.

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A share of stock gives the owner with other owners the right to pick the management of the company. does not promise a fixed annual payment. is a fractional ownership of the firm. all of the above.

Answers

Answer:

all of the above.

Explanation:

The share of the stock provides the following things like

a. Have the opportunity to pick the company management with the other owners

b. It does not provide the fixed annual payment it is variable annual payment

3. In addition to this, it has the fractional firm ownership

Based on the above things, the correct option is the last one

Hence, the same is to be considered

assume the following the standard price per pound is 2.00 the standard quantity of pounds allowed per unit of finished goods is 4 pounds the actual quantity of materials purchased and used in production is 50000 pounds the company produced 13000 units of finished goods during the period the actual price per pound of direct materials is closest to

Answers

Answer: $2.28

Explanation:

Based on the information given, the actual price per pound of direct materials will be calculated as:

Material Price Variance = (14000)

Since material price valriance is the actual price deducted from the standard price for actual quantity that was used during production process. This will be:

(14000) = [(2 × 50000)] - [Actual Price × 50000]

(14000) = (100000) - (actual price × 50000)

(Actual Price × 50000) = 100000 + 14000

Actual Price × 50000) = 114000

Actual Price = 114000 / 50000

Actual price = 2.28

College football coaching requires that coaches design every facet of practices, set goals for their players, determine schedules, and even direct all of the plays during the games. College football coaching uses ____ type of managing.A. AchievementbConsideration
B. Background image
C. Charismad.D. Empathy.

Answers

Answer: d.  initiating structure

Explanation:

An Initiating structure management style is one in which the leader is very involved in the activities of the subordinates. They organize tasks, initiate group action and define the team's goals and roles.

This is what happens in collage football. The coach designs everything even on the pitch during games. They are therefore using an initiating structure management style.

g The Ricardian equivalence states that if the government cuts taxes without changing current or future expenditure then: a) households will consume more because the marginal propensity to consume is positive b) households will save more because they will expect higher taxes in the future c) households will consume less because they will acquire the debt issued by the government d) households will save less because the tax multiplier is bigger than 1 e) both (a) and (d) f) both (b) and (c)

Answers

Answer:

b) households will save more because they will expect higher taxes in the future

Explanation:

The Ricardian Equivalence proposition is one of the pillars of classical economics, which sadly has proven to not work very well in the real world. According to classical economists, and their quantity theory of money plus the Ricardian Equivalence, recessions do not exist because it is impossible for them to exist. But in the real world, that is not true. Recessions exist, e.g. the US is in a recession since the first quarter of 2020 (even before the current health crisis). When real people lose their jobs or are afraid to lose their jobs, their spending habits change.

On the other hand, when real people get a tax refund or tax cut, they generally spend it, they will not save it to pay future taxes. That is why car sales increase during February after checks form the IRS are handed out.

Theoretically, classical economics is great. The problem is that we are human beings, and as such, our behavior cannot be controlled or determined by what we should or should not do. This is exactly why the velocity of money (quantitative theory of money) is not constant.

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