Econ Paper: Tax Cuts for the Rich Make the Rich Richer, Don't Help the Economy and Don't Trickle Down (deduction, debt)
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By your logic, I guess the tax increases of the early 1990's spurred the even greater economic boom of the 1990's. Not to mention that other taxes were increased under Reagan several times after 1981.
Ever hear of Paul Volker? Since when are tax cuts anti-inflationary anyway.
The sharp reduction in interest rates by the Federal Reserve played a role in the early 80's bounce back. The fed funds rate fell from about 19 percent in July 1981 to about 9 percent in November 1982.
Not to mention Reagan’s defense buildup and highway construction programs greatly increased the federal government’s purchases of goods and services. Textbook Keynesian economics.
I think what you are referring to is total social spending as a percent of GDP which includes public and private social spending (which includes items like employer-sponsored health insurance).
Private social spending is not really social spending. Think about employer-sponsored health insurance. Really, this isn’t some kind of social-welfare benefit, it is a form of compensation for labor.
If more people could afford your boss’ product/services, would he make more or less money?
Obviously more. But that was always true. If we assume you are one of the "people" - then somehow you're implying that if you tax my boss more - you, personally, will have more to spend.
If more people could afford your boss’ product/services, would he make more or less money?
Obviously more. But that was always true. If we assume you are one of the "people" - then somehow you're implying that if you tax my boss more - you, personally, will have more to spend.
I still don't see how it works.
This whole premise of if the boss makes more you make more is nonsense ...you get paid a fair market wage to do your job.
If the boss makes more he can hire more employees and grow the company .
Like I said the company I retired from had 8 of us and did 6-8 million dollars ....we got paid a market wage ..in the 24 years I was there the company grew to over 100 million and has 320 employees earning a fair market wage ....
OF course the boss makes more ,who would put up with the hassles of managing people,giving them reviews and hiring and firing,budgeting and allocating $$ and maximising profits.
If you have done something wrong,he would take the blame besides you.
European rich are born rich,some sell homemade jelly and cupcakes in their castles to pay tax and heating bills,but our rich comes from modest background,they become rich or filthy rich because they offer goods and services in high demand.
If you resent their wealth,cut up your VISA and MC cards and only buy when you have the cash on hand,remember the old days,how your parents and grandparents sweat in the summer in front of a fan or write letters to each other instead of calling long distance,eat out may be once a month or once a week or never NOT once a day ,no Dash driver to deliver your digital orders and no buy now pay later.
If we all go back to pay when we have the cash on hand,you will see our economy flatten like a hammer hitting a souffle(borrowed from the words of Elon Musk)
Why anyone thinks they should share profits above being compensated for what it is they do because the boss makes more is silly...
While no one is entitled to profits above their salary, many businesses use profit sharing to motivate employees to step up their productivity. Nothing silly about it.
European rich are born rich,some sell homemade jelly and cupcakes in their castles to pay tax and heating bills,but our rich comes from modest background,they become rich or filthy rich because they offer goods and services in high demand.
Donald Trump and his kids were all born with silver spoons and inherited their wealth in a very European class way. As wealth inequality increases, along with the cuts in the inheritance tax, you're going to see the U.S. become more like Europe where upward class mobility is more difficult. On the bottom end we're seeing large numbers of young people saddled with large student loans who are paid low wages and can't afford to build wealth, either through investing or buying a home, because they can barely afford to rent an apartment.
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