Originally posted by traderdrew I will ask the question from the flip side. Instead of asking, "Does cutting taxes on the rich and wealthy stimulate the economy?" I ask, "Does increasing taxes on the rich and wealthy help stimulate the economy? I bet a question like this wouldn't even come into a liberals mind.
Oh it comes to mind.. and the only reason your thought is in error is because we currently have 2 realities
1)CUT TAXES ON THE RICH, BROADEN THE INTAKE i.e taxes on EVERYONE else(and cut benfits too)
The fake reality is during these times we need to cut taxes to the rich and cut other means of injecting liquidity into the system.. i.e. gov. money in the form of spendable benefits..
Soo if the argument was cut taxes on the wealthy YET remove money from the economy in terms of new taxes "broadn the base" or cuts in gov. employment and aid AT BEST this is a zero sum game for economic liquidity (really tilts more to negative)
2)We need to cut taxes ESPECIALLY in the largest "spending class" i.e. poor middle class because the economy is choking from too few consumers.
AND we need to spend into the economy.. Otherwise surprise surprise.. recovery is slooooooooooow...
Increase programs intended to stimulate the economy. (from mortgage/debt forgiveness to increasing minimum wage/gov wage and even gov. employment.you would win... which brings us to the real reality INCREASE LIQUIDITY in the economy in any means possible starting w BOTTOM UP as that will grasese the wheels of capitalism MORE than any "upper income cuts" AS IS CLEARLY proven..
first thing would be to eliminate all Fed payroll taxes..........
UNTIL we realize that
Quote: "Reagan proved deficits don't matter" (Dick Cheney)
AT THIS juncture ALL WE can hope for is a "pretend raise" on the upper class to avoid a GASH of money from being removed from the lower classes and or infastructure.
As raising taxes on the upper class affects the economy only slightly.... WELL these are your rules not mine.............
I'm all for not raising taxes on the "upper classes" IF you are all for spending on the lower classes.. Until you UNDERSTAND this is actually possible and fiscally sound this arguement will never end..
The fight is not to "raise taxes" but to prevent other cuts...........