Tax cuts to the Rich (Reganomics Stuff).?

Question

I've looked up several Repulican's explanations over how it "benefits" everyone and have yet to see any true benefit. Recently I saw someone try to use the analogy of going to dinner, and yet that one also made little sense.
I mean how do you know that rich people with more money in the pockets are going to invest it into jobs? Isn't that a personal decision that they are to make on their own? Also, does that really matter.
I mean you can point to how the economy got better when this stuff was implemented a while back, however that could have been mere chance as well. Also, personally that really doesn't matter to me. Let the economy suffer a little in order for things to be a little fair around here. Why don't we just say ok, every person takes 40% of their income and gives it to taxes??? Yes, the rich pay more, but they also make more! Really, should some CEO sitting in an office make more than someone, lets say who works on a hot roof all day. Any input from any side....?

Answer 1

If you or I ran deficits like GWB the banks would repossess everything we own. Obviously if you were paying off the banks with low corporate taxes, they can wait a little longer before calling in the loan.
The bad news is that China is now the banker. They will call in the loan when they are ready to become the dominant power in the world. Too bad America has sacrificed itself to serve the rich.

Answer 2

Well it's easy to say let the economy suffer a little to make things more fair. Especially since the economy feels no pain. But people do. When you choke down the economy you push people down into a lower standard of living. Which means they don't live as well or as long. You just knocked some years off a bunch of peoples lives. Which is equal to just killing off some fraction of that number. So I don't think I'd be quite so glib about letting the economy suffer. Well thats the cost side of of your proposal, killing people.

Now for the benefit side of the equation. Just how does taking away what someone has earned and giving it to someone who didn't earn it fair. What's fair about that. Why should I get up at 5:00 in the morning, go to work, work till 5:00 that evening, so the government can take 33% of my earning right off the top. So some sleazy politician can bribe some deadbeat for his vote. That way when the deadbeat gets out of bed around noon, he'll have some money to buy beer with down at the neighborhood 7-11. Then he can sit on his front porch the rest of the afternoon and have some nice cold beer.

If you're system get implemented more than it already is. I won't get up at 5:00 and go to work. Where are you going to get your income taxes if I have no income.

I'm morally opposed to the income tax and only pay it under the threat of going to jail. It required a constitutional amendment to make it legal to pass a direct tax on income. As soon as I get in a position to quit paying it I will.

Answer 3

The idea is you know better how to spend money than the government does (would you buy a $500 hammer). Reganomics said that if people have money to spend then they buy things which causes more jobs. If Thurston Howell III wants a new boat if he gets to keep the money he earns, then he can go buy it which causes the number of orders for new boats to go up, which causes the vinyl industry to get a bump, and so does plastic companies, and so do paint companies, when he goes to the lake (which is more crowded because everyone else has decided they need a new boat) more recreation equipment is sold, more hotel rooms are used, people open bed and breakfasts, people open restaurants. As opposed to democratic voodoo, which, Thurston wants a new boat but since he is part of the "evil rich" he has to pay his fair share (which is more like 70% of his earnings) so he and his family stay at home, don't buy a new home, or car, or boat, or go out to eat very often. So the jobs that pay less which most people use to be stepping stones to better paying jobs get cut which mean the people who would have had them are now on the government pay roll and of course they want a raise which means Thurstons taxes keep going up as more and more people are on public assistance. Finally Thurston bugs out and moves to Switzerland or the Caribbean. Which, buy the way, I know 3 people who between them have started 8 businesses who are planning on doing just that. Which leaves the U.S. with less people who know how to run a business, have the nerve to start a business (all three mortgaged everything they had, I am not that brave), and have actually ran a business versus read about it in a text book.

Answer 4

Money in the hands of people stimulates the economy, whether they are rich or poor. The problem- how to you put money in the hands of the poor? Transfer of more wealth from the rich to the poor each year? This would only create greater dependency on entitlements and give lessen the incentive to achieve. Give the poor greater tax cuts? You can only cut the taxes for the poor by so much, because they don't pay much in taxes. When Tom Daschle said that the result of a proposed Bush tax cut would mean that a rich person would be able to buy a new car, without realizing it, he proved the theory of Trickle Down Economics. The person selling that car would generate income that he would otherwise not have had. Please note that if that person sells enough cars, he will gain wealth. If tax rates in this county were at 75% what would happen to the economy? The answer is that no one would have money to spend on anything except housing and food. The result would be that businesses everywhere would fail, because no one would have money to buy clothes, electronics, entertainment, repairs for their homes or cars, go on vacation..... If they did buy such things, they would have to go in to debt to do so. How would this help the working class or the poor? Please note the average taxpayer, pays roughly 50% of their income in taxes. After the attack on September 11th, Hillary Clinton said, "come to New York and spend money." She knew if people stopped coming to New York and spending money, businesses would fail and the economy in New York would suffer a great downturn, which would hurt the average working family. This is interesting considering that liberals are for tax hikes and against tax cuts. The only thing that helps the working class is a strong economy. It gives the average worker more freedom and more bargaining power. When the financial sector was booming from 1987 through 1989, workers were getting bonuses, overtime and stock options. When the financial sector suffered a downturn in 1990, it trickled down. There were no more bonuses, overtime, stock options and their were layoffs.

Answer 5

first i thing there are some definitions missing in your question.

what is the income bracket for "rich"

according to the democrats and government if you make $75K a year you are rich, and I can personally tell you that is a crock.

Now do you understand that if you and I are allowed to keep more of our money, it goes into the economy rather than the blackhole of socialist government. As that economy gets larger more businesses need more help and to get it they have to pay more and so forth and so on.

In the past five years, directly as a result of tax breaks for Americans, that is allowing you and I to keep more of OUR money, the economy is better than ever before in recorded history, the tax revenues to the country are higher than ever before in history and here is the key point, more people have bought homes than ever before in history, just because you and I got to keep some of OUR money.

Does that make sense? I hope so because if you don't get that you aren't going to get anything, including a raise and more money.

Answer 6

Start with this:

The top 50% of earners pay 96.54% of federal income taxes.
The top 1% pay 34.27% of the federal income taxes.
These stats are from Rushlimbaugh.com. He took them from the IRS.

If you are going to give a federal income tax cut, this is who it goes to. Not only that, but it belongs to the person who earns it.

What gives you the right to tell someone how much they can earn or what they can spend it on? This attitude is arrogant. I earn what I earn and it belongs to me. If you want money spent on social programs, spend your own.

To me, everytime a politican takes my money and redistrubutes it, that is stealing. You want to fix homelessness, spend your money, not mine. This is a free society, not a socialist country.

This class warfare garbage is destroying this country. I am sick of it. There are too many people who think they can tell others how to live their lives and spend their money.

As for trickle-down economics, when you cut taxes, more money is put into the economy. It is either spent, invested, or put into savings.

If it is spent, someone makes money and thus a profit. The sale is taxed and the profit is taxed.

If it is invested, a company expands and makes more money or hires more people. Either way, more money ends up in the treasury.

If it is put in savings, it is taxed on interest received. The bank makes money on that savings, so they are taxed. Also, they loan out the money, so it creates economic growth.

Answer 7

If you said, everyone takes 40% of their income, the wealthy probably would not complain.

The wealthy pay 38.6 percent to 35 percent, The middle income tax brackets are from 25 to 33 percent. The lowest income tax brackets are between 10 and 15 percent.

Does that sound fair to you?

Answer 8

rich people with more disposable income will take more vacations, buy more things that require maintenance, just their lifestyle choices will create more work for you and i.

furthermore, they will invest more in stocks and other investments which will promote job growth in the companies that have renewed capital.

if you are interested in fair taxation, please go here and read about it. there is also a great book

fairtax.org

many libertarians are pushing the idea

lp.org

read up. things will only improve.

Answer 9

Tax cuts only need to go to those who pay taxes and if you pay the larger amount then you get a larger cut.

Answer 10

trickle down theory is a fairy tale