No Surprise here. Tax Cuts for the Rich Don't Spur Growth

[Mr.Bill]

[Ben Huh]

Cutting taxes for the rich and the economy improving are not mutually exclusive. The entire idea behind the policy is to make the US an ideal place for the rich to keep and invest their money. The less taxes they have to pay, particularly taxes paid for running businesses, the more attractive the US becomes to keep investing. Problem you have at the moment is that consumerism is down big time and despite tax decreases, the rich simply want to sit on their cash until consumerism rises instead of investing it in something to get the consumers spending their money again. It is the unfortunate catch-22 that exist in the market - rich keep their money to themselves because purchasing market is down, but best way to get consumer rates back up is to take risk investing and give them something worth buying. There really is no simple solution as do you force people to make investments with their private funds or tax them at a higher level for wanting to sit on their cash? It is a pretty thin line to walk, because IMO both involve oversteps by the government. I support tax increase, however not ones that are aimed at the rich for sitting on their cash. The market sucks and as much as I may want them to invest, I know why they are not.

[The Dude]

[Daktoria]

[Ben Huh]

[The Dude]

When you say "not mutually exclusive," you're arguing both happen at the same time.


Dak - I highly doubt you're correct here as pretty much all evidence to the contrary has been long debunked or thrown away. Upload it somewhere and link it.

[Davethulhu]

There's a very weak correlation between capital gains and job creation. For example: I buy stock in company X. Company X lays off American workers and outsources their jobs to China. I collect capital gains if the stock appreciates, however, job creation was negative.

[Ben Huh]

[PoS]

Ben pwning this thread.

[The Dude]