I'm curious is cutting taxes on the rich actually creates jobs. I understand the theory of it, but does it work in practice? Obviously no taxes would be ideal, but short of that, is this how you create jobs?
Cutting taxes on the rich
I'm curious is cutting taxes on the rich actually creates jobs. I understand the theory of it, but does it work in practice? Obviously no taxes would be ideal, but short of that, is this how you create jobs?
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Originally Posted by jllundqu
The question itself is not specific enough. What kind of taxes are you cutting? What is "rich"? What is the starting and ending tax rate?
Too many variables to test this hypothesis in the real world even if you have the specifics.
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Let's take the Bush tax cuts, as an example.
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Any , Any , tax cut creates the possibilty that some of that money, goes back into the economy, gets invested where it can be borrowed by the ordinary , to create with , or is used to expand a business that the ordinary may benefit from . Any , Any tax hike, does exactly , the opposite.
Taxes are like leaches, a couple three, a few, may be painful & annoying,multiples, can suck the life from the host.
You may get to see that quickly, when the "newest" recession starts when it stops .
At the very least I would imagine that a tax cut on the wealthy would give them more money to accumulate capital for further expansions. The jobs might not be there immediately, but they will be in 5, 10 years, or so.
Rand Paul 2016
Rich people do not keep their money in their mattresses. They have it invested in the economy. In other businesses. In their own businesses.
If you rob their wealth to feed the government, that's more money taken out of the economy. Fewer jobs.
People invest where they think they can get the most return. It sends proper signals to the market. Government screws up the signals and wealth is misallocated.
I've been trying to break this down in the simplest form possible.
"And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat
"It is difficult to free fools from the chains they revere." - Voltaire
Would you rather smart rich people decide where to put money, or a bunch of stupid polititians who end up making problems worse?
Excellent point. Well said.
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