When the likes of the top 2% get a windfall, they don't typically spend it in the same way most people would. While the top 2% account for a good chunk of consumer spending, what are the odds of their spending more on consumer goods as a result of tax cuts?
These 2%ers are not spenders like you and me. They're savers. They're budgeters. Many of them know exactly where every penny goes, and they like to hang onto as much as they can while not sacrificing their lifestyle.
Give a rich man $50,000 in tax cuts and he'll likely invest it in God knows where. Maybe China or India.
Give the average guy $1,000 and he's likely to spend it (and maybe more) on something he's been meaning to get for a while.
Regardless, the impact is short term (if you believe the info in the article I posted above). It's not like the guy is going to keep spending that kind of money.
---------- Post added at 10:58 AM ---------- Previous post was at 10:55 AM ----------
Quote:
Originally Posted by roachboy
yes. so far the tax-break driven activities of the top 2% has been an awesome success story. who in their right mind would reverse the cuts?
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No one. It's folly to think you can eliminate tax cuts or—gasp—raise taxes to deal with a deficit and pay down a runaway debt. No one would recommend that ridiculous course of action.
Just let the rich keep more of their money. That'll fix things. It always has. Just let them be and we'll move toward full employment and if you eliminate enough social programs (who needs those with full employment?), the government can finally pay off their socialist debts.