|
Tax cuts are only effective (amount of money put back in circulation per dollar government can no longer spend) on low/middle class families.
2% reduced taxes on a 50k/yr family is relatively small, and almost immediately gets spent. However small, the sheer number of families in the Middle class ensure massive amounts of funds reinvested into the economy.
2% reduction on a multimillionaire is a massive sum, with very few people in the category. Unfortunately when someone has 2million in the bank, 100k is almost un-noticable. It doesn't get reinvested like trickle-down economics preaches, it sits in the bank.
So does the tax cuts work? Yes, but there is a BIG separation in effectiveness. That's a big reason I support Obama's pledge to continue the tax cuts to people making below $250k. I'm sorry if you make more than that you have no reason whatsoever to complain in this country.
__________________
"Smite the rocks with the rod of knowledge, and fountains of unstinted wealth will gush forth." - Ashbel Smith as he laid the first cornerstone of the University of Texas
|