Why are the rich so greedy? (salary, generation, millionaires, dollars)
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Yeah, rich people probably just hide it under the mattresses. Or put it all in a big silo and swim around in it like Scrooge McDuck.
Or, maybe...just maybe...even if they are not spending it on new cars, they are investing it, which still benefits the economy. Maybe? Is that possible?
Maybe? MAYBE. Does "trickle down" economics really work?
Supply side vs. Demand side. What benefits the economy more:
More people spending money, or more people investing money?
Our economy is built on "spending" money. Just watch a retailer go into shell shock when sales are down. No amount of "investing" will save that company, and "tax breaks" are worthless if you're not making money to begin with because nobody is buying it.
The rich, at a certain point, DO stop spending. They invest to make more money.... which is the "trickle down" theorists tell us is the best thing for the economy. Problem is, the only thing that has kept the "lower classes" doing OK is NOT "trickle down" from the rich in America, but the ability to buy toys for less money because of the Chinese. As essentials go up, no amount of cheap crap from China will be able to make up the difference.
Maybe? MAYBE. Does "trickle down" economics really work?
Supply side vs. Demand side. What benefits the economy more:
More people spending money, or more people investing money?
Our economy is built on "spending" money. Just watch a retailer go into shell shock when sales are down. No amount of "investing" will save that company, and "tax breaks" are worthless if you're not making money to begin with because nobody is buying it.
The rich, at a certain point, DO stop spending. They invest to make more money.... which is the "trickle down" theorists tell us is the best thing for the economy. Problem is, the only thing that has kept the "lower classes" doing OK is NOT "trickle down" from the rich in America, but the ability to buy toys for less money because of the Chinese. As essentials go up, no amount of cheap crap from China will be able to make up the difference.
What do they invest in? Businesses? Stocks? This is bad because it is not a direct influence on the economy?
How is it better to stifle savings, spending, and investments through higher taxation?
How about all the rich haters which of course are just jealous people stop obsessing about what others pay in taxes. Do you think if the rich are get taxed more you are going to be happier or be any richer yourself. Get over it and worry about your own life.
There are so many threads out there right now ... proponents of the fair tax, why does everyone hate the rich, etc..
So I guess I'll take the other tack. If you were to earn a substantial amount of money - say $1,000,000 - and you knew it would be taxed at a straight 50%, so now you're only taking home $500K - no tax shelters for you - why would that be bad?
If you were earning only $650K, taxed at 40%, you mean you really wouldn't want the raise to $1million? It wouldn't be worth it because you're paying more in taxes?
discuss and enlighten.
I would still personally take the raise, I don't see taxes as a disincentive to work in this case. The government is making more money, but ... so am I.
Lets do the math.
$1,000,000 taxed at 50% = take home pay $500,000, taxes $500,000
$650,000 taxed at 40% = take home pay $390,000, taxes $260,000
Given your example, the problem is that your take home pay goes up $110,000 while taxes go up $240,000.
Correction! The government would not be "making" more money it would be "taking" more money!
Now thats a great post!
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