(11-02-2017 01:42 PM)Redwingtom Wrote: (11-02-2017 01:30 PM)JMUDunk Wrote: (11-02-2017 01:24 PM)Redwingtom Wrote: (11-02-2017 01:19 PM)JMUDunk Wrote: (11-02-2017 12:36 PM)Redwingtom Wrote: I thought you were implying that merely lowering taxes will spur the economy, increase wages, and increase revenue going to the treasury. If so, what proof do you have that tax cuts necessarily do these?
Well, no. In theory “merely lowering taxes” will simply lessen the $ amount generated in tax revenue.
That is, of course, if that’s all that happens. The beneficiary of the lower taxes takes that extra money and stuffs it under the mattress or something.
But, we all know that’s generally NOT what happens. That money gets put to work in a near infinite number of ways.
I don't disagree with that when that cut is significant enough and is given to the poor and middle class who actually need to spend it. The problem is that more than likely the largest portion of this tax cut will go those who don't necessarily need it to live. Therefore, they will just stuff it away.
A. The poor and much of he middle class pay no income tax at all, or very little.how do you give someone a tax cut that doesn’t pay taxes?
B. These wealthy just “stuff it away” where? Buried in coffee cans in the back yard?
Lots of folks have money they “don’t need it to live on”, anyone ordering a delivery pizza for instance...
I'm clearly not talking about people who pay no taxes. I'm at the low end of the middle class spectrum and I pay thousands in taxes.
But yes, the rich (that are going to get the bulk of this cut) stuff the money in bank accounts or the stock market, etc. They're not necessarily going to buy more stuff just to buy more stuff. They can already do that.
Well, first off I don’t think the top marginal rate has been changed at all. The wealthiest are getting NO cut with this package, best I understand.
That’s a mistake IMO, but a political bogeyman better left avoided.
Doubling the exemptions and increasing the Kid deduction, the standard deduction and other adjustments will likely provide some form of tax relief for most if not all, THAT PAY INC TAXES.
Wash Po has already issued four freaking Pinocchio’s to Fransicko Nan and their tired ass talking points about a “give away to the rich”. Or this Van Hollen clown making a fool of himself, yet again, talking about “windfalls for wealthy corporations”.
But, to your notion that putting it in bank accounts or investing that money means “stuffing it away” is just silly. And I’m quite sure you know that.
First we want people saving and investing, so they aren’t a drain/burden later in life when wage income disappears.
Secondly, every one of those dollars is then kept OUT of DC and were all better off for that.
Third, that money is put to work making loans to homebuyers, car buyers, business start-ups, expansions whatever. Every one of those dollars is put to work somewhere, whether it’s spent on “consumption” ie that delivery pizza, or investment.
Very few are stuffing bills into the mattresses any longer...