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Originally Posted by ViRedd  I mean, if you give a really, really poor guy a tax break, how would the money he saved trickle up through the economy to cause capital creation, business starts, more employment, a higher savings rate and consumer confidence? Please explain ... Thanks.  Vi |
I'm not very versed on economics but I do have good morals.(I might be taking your last post the wrong way, idk.) First off, if a you give a really poor guy a tax break I think he would have a propensity to spend it on healthier food and bills(how can you save if you are really poor?). So, if you can follow my logic you can see that the poor man is spending the money at businesses and thusly slightly boosting the local economy. If that money were to go to the Feds than only the Fed would capitalize.
Do you propose that it is a better idea to impose higher taxes on the poor in order to stimulate the economy? That seems ludicrous if you ask me. The only thing that would stimulate is gov't revenue and gov't spending, and we all know how that works.
Please explain ... Thanks.
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Edit- If you give rich people tax cuts they will have more of a propensity to save because there is nothing THEY NEED! The rich could be content with all they have ATM. The poor people NEED certain things that they might not be able to supply their selves with(proper food, clothing, housing, medicine, and their general well being), hence they are poor.