| Sqrl said: Paragraph by paragraph: No they do spend their money, but they don't spend it on frivolous things, they invest it in business, real estate, bonds, etc.... and it is very healthy for the economy. There aren't rich people who simply have a giant vault of $100 bills or anything. Now, Ideally there would be incentives to get all people to invest some of their extra cash but those details can get sticky very quickly. You would very likely pay less taxes because the government would be spending less. The government would be spending less because they would not be propping up one of the most expensives beaurocracies in the world...the I.R.S.. I'm sure someone could rustle up the expenditure statistics for the IRS, and I bet they aren't pretty. |
As ugly as the IRS expenditure sheets are, I don't think they make a significant dent in the overall budget.
I agree about rich people spending their money and helping the economy, though. Also, I don't understand why rich people getting richer by saving their money is a bad thing for the economy. Sure, they're accumulating wealth by saving most of their money, but they're still spending more money than the middle class, and as long as their wealth continues to grow, they'll continue to spend even more money.
