Liberals, how does keeping money in the economy (tax cuts) hurts the economy?
Srry for the no questions lately, I've been busy.
- HistoryguyLv 77 years agoFavorite Answer
Depending on what the tax cut is it doesn't actually "keep money in the economy." The taxes which conservatives are most hostile too are progressive income taxes, particularly those at the upper end of the income scale. Conversely these are the taxes which liberals tend to favor the most: progressive taxes which will fall mainly or exclusively on wealthier individuals.
In general that money is not "in the economy" when it's not taxed. In fact just the opposite. By definition, rich people have more money than they spend, so the money which is being taxed is generally not money which is being spent to keep the economy humming. What taxation does is take this unproductive excess money and turn it into economically productive spending.
- Anonymous7 years ago
economics 101 says that wealth does not disappear , it just changes hands . there is just as much wealth in america as there was 10 , 20 , or 30 years ago , it has just moved to the hands of the 1 % . since 9 11 we have seen the largest redistribution of wealth in human history , from the middle class working man , up to the top few percent richest . tens of trillions have been money grubbed from home equities and life savings .
corporations are sitting on ( hoarding ) over 2 trillion dollars cash . that is 5/6 of ALL currency in circulation ( or rather NOT circulating ) . it is unprecedented to be holding so much cash . 20 years ago the shareholders would be demanding they pay it out to them in the form of dividends . plus they are sitting on over 6 trillion of untaxed profits held offshore .
in '88 reagan cut the top fed tax bracket from 70 % to 35 % .( we lost about 1/4 of the total yearly treasury revenue intake ) he said if we did this that some of the 1 trillion dollars a year more that the rich would get to pocket would " trickle down " to the working class man . in 35 years the rich have put a minimum of 35 trillion more in their pockets , 35 trillion less into the treasury , yet not one dime has ever trickled down . in '02 bush gave the rich an additional 1 trillion dollars a year tax break ( another 1/4 loss ) . he said it would " boost the economy and create jobs " . so far it has done the opposite . in 11 years it has put an additional 11 trillion more in the rich mans pocket , 11 trillion less into the treasury , and caused massive government debt . tax cut for the rich have only benefited the zionist agenda of greed of wall street , corporations , and the bankers . it seem to be a conspiracy to turn the working man into an economic slave . but like as in ancient rome , the slaves will rise up against their oppressors . i can see it coming .
- lareLv 77 years ago
because it does not stimulate economy if it primarily goes to the rich. trickle down has been tried twice on a grand scale with Reagan and Bush, and failed both times. Reagan was smart enough to realize his mistake, and gave us the largest peacetime tax increase in history in the 1986 reform act. Bush wasn't, he just let the economy tank. the so-called Bush tax cuts did not reduce rates for most of the middle class, just the wealthy and the poor got a deal. what does stimulate the economy is trickle up, that worked for both Kennedy and FDR. making sure the middle class has disposable income is a far greater stimulus because they don't put their profits into Cayman bank accounts.
- busterwasmycatLv 77 years ago
it doesn't, unless you borrow to pay for things at the same time, oh, like say, doubling defense spending. Then it creates a short-term economic bubble that collapses and erases all the wealth, but leaves the debt. Perhaps some of this might sound familiar if you had been around for about the past 35 years and lived it first hand.
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- GregLv 77 years ago
Yah Ok .Source(s): Tax cuts are one way to save money for replacing a Very large boat that is missing and needs to be replaced.