How will giving more money to the rich benefit the economy?
Obviously our number 1 goal in this country should be to give the rich massive tax breaks
- Anonymous4 months agoFavorite Answer
It won’t. It’s been tried before and it has never benefited the economy.
How they THINK it will work:
Give money to rich people.
Rich people use that money to invest and create jobs.
Employees get jobs and pay more in income taxes than was originally given to the rich.
How it REALLY works:
Give money to the rich.
The rich invests that money in Bangladesh or Malaysia to create jobs.
Rich use the increased profits from the lower costs of production to cut CEO bonuses and shareholder dividends which are then placed in offshore tax shelters.
Rich then ask for government bailouts because Joe Unemployed isn’t buying enough of their widgets.
Rich win, everyone else loses.
- ChrisLv 64 months ago
Economic growth and development comes from investment. Where do you think investment comes from? Will you get more or less investment if taxes on the rich go up?
- EdwenaLv 74 months ago
You are making the classic error of thinking that it is your money, and if not your money, it is the government's money and you are entitled to it. How do you explain this error?
- Ryde0nLv 44 months ago
I am always dumbfounded at the way Leftists view being allowed to keep a bit more of one's own hard earned money is considered " Giving " .
I suppose it must be similar to the formula used by the Democrats when they calculated that they saved Billions of dollars by chasing Amazon out of New York .Source(s): As if I am taxed a a rate 3% less than before I have been given something
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- EntropyLv 74 months ago
First of all, a tax break is not GIVING someone money, it's STEALING less from them. Big difference.
Second, tax cuts do in fact stimulate the economy. No serious economist disagrees. Even Keynes himself agreed. Obama's economic advisors, every one a Keynesian, advised him NOT to raise taxes because it would counteract the stimulus they were putting in place.
Third, why do Republicans tend to put forth tax cuts that lean towards the rich? Well, there's alot of answers to that question. But the most common answer is that wealthy people use more of their income to INVEST AND SAVE rather than to SPEND AND CONSUME. Since supply side theory is all about using INVESTMENT to stimulate business expansion as a means of stimulating the economy, they'd rather create the incentive in the hands of someone more likely to invest it. That's why cap gains taxes in particular are important targets for cuts by Republicans.
- Anonymous4 months ago
Empowering these guys melted the poles. Greatness.