Most of you are too young to recall the special wealth tax that got added in 1990 or '91. A lot of working class people were thrilled...until they didn't have jobs at Cadillac, boat companies, resorts, and many other luxury type things that "the rich" decided to go without. The top 50% of US taxpayers pay 98% of federal income taxes, so nearly half of us are getting a free ride.
But what if "the rich" are compelled to give less money to the government...what happens? If they spend it, it goes to provide jobs for people who make the items or provide the service. If they save it, it goes into a bank that lends it to people who want a mortgage to buy a home. If they invest it, it goes to companies to propel the economy forward.
Every tax has unintended consequences. Whenever I'm reading about an investment that doesn't seem to make sense, looking below the surface reveals a tax incentive to do that thing. So, it might not profit, but the after tax benefits drive it.
Except that won't compel a bank to lend. In theory it should, but it doesn't. If they invest it, you'd think that help companies grow, but it doesn't, it just feeds the beast; the money gets locked up and stock buy backs happen because it's all about appeasing investors.
Fucking idiots on this site. I will attempt to explain just in case some uneducated but otherwise intelligent fool should stumble across this post and maybe I can reach him. That is absolutely NOT how "trickle down economics" works and nor was it ever intended to spread wealth down to every little pissant in every company. Remember, we're talking about a trickle not a deluge. As simply as I can put it, this means that the company has to do well financially in order for YOU to have a job. If the owner is making money, that will TRICKLE DOWN to those working for him in the form of a paycheck. I don't know about you but I have never been paid a wage by someone with LESS money than me. Maybe it's a large paycheck, maybe not. If not, find another job cupcake. No one owes you anything. If you think you deserve to make more money start your own company. Just don't forget to share your income "fairly" with everyone working for you.
In other words, tax cuts for the wealthy are exclusively for the benefit of that person. Even if they have more money, they aren't obligated to pay their workers any more, and only become richer, causing the economy to stagnate as more and more money is stockpiled in one place without being spent.
" If not, find another job cupcake." Yeah because jobs grow on trees and getting a new job is super simple, right? Sorry dude, but trickle down very rarely works the way it was intended. When you have a business making billions of dollars in profit and an employee of that business working 7 days a week and still can't make ends meet, that's a sign there may be a problem.
even the dude that coined the phrase "trickle-down economics", which was just a renaming of an trend that occurred in monarchies across Europe for a thousand years, stated the idea was completely bogus and would never actually work.
But what if "the rich" are compelled to give less money to the government...what happens? If they spend it, it goes to provide jobs for people who make the items or provide the service. If they save it, it goes into a bank that lends it to people who want a mortgage to buy a home. If they invest it, it goes to companies to propel the economy forward.
Every tax has unintended consequences. Whenever I'm reading about an investment that doesn't seem to make sense, looking below the surface reveals a tax incentive to do that thing. So, it might not profit, but the after tax benefits drive it.