| numonex said: Do you believe in trickle-down economics? Well if you are a Boston Tea Party Republican then the answer would most likely be Yes! Tax rebates and tax cuts for the wealthy will supposedly be spent on capital infrastructure and the equity market which will create more jobs for the working class and middle class. What if the wealthy elites kept their extra money in the bank and just sat back and did nothing? In order for the government to justify more spending on infrastructure, They would have to increase tax rates. Capital threat by wealthy elites would set up shop overseas. Either way you look at it reduce taxes too low or increase taxes too high, there is no real solution to a never ending problem. Catch 22.
|
Money put into a bank isn't a problem. The bank is then compelled to go out and lend the money and someone else creates new business with it. A problem with tax cuts would be when the money gets invested in factories in China, or offshore. That money doesn't create jobs and build the economy in the United States, or whatever nation gave the tax cuts.
