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Originally Posted by flstf
Since the poor and middle class spend a larger portion of their income on living expenses (food, shelter, etc..), and since these item's prices are probably 50% or more due to taxes, then they spend a lot more of their income on taxes (indirectly) than the wealthy. An income tax cut only immediately effects those who pay income taxes, eventually it may help to reduce the price of goods and services though.
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This is what brings me to the 'I trust the rich' post.
We have people who can't even figure out how to spend less money than they make trying to dictate government tax policy. Its no wonder the government is in debt.
Since money gets taxed when it changes hands its VERY hard to explain to someone that by lowering taxes you can increase tax revenue. What the people see is IF they had a higher tax and the same transactions took place the government would have made more money. What they fail to see is that if the taxes were higher, less money would have changed hands less often or done so in more tax free ways. The end result is less revenue.
This is part of why we need more economics taught in school.