Can you believe the number of people in yahoo answers that think cutting rich peoples taxes generates money?

Question

for the working class. when the rich get money they keep it. Did you ever do any work for a rick man and try to get paid for it?????

Answer 1

I agree with the question asker.

And to the responder who said cutting rich people's taxes creates jobs, that's a load of crap.

I'm sure a rich person sits around and thinks, "Wow, they cut my taxes so now I get to keep $500 million instead of $480 million this year, I guess I can buy that house I wasn't planning on buying."

No, they buy what they want to buy anyway, because they have more money than can be spent. It doesn't create jobs -- it just keeps the gap between the rich and the poor really, REALLY big, just the way many sad souls want.

Answer 2

Are you suggesting that a poor man pays better? My husband worked as a mover for many years, since richer people are more likely to pay someone else to move them, yes he did do work for rich men and get paid for it. On top of that the richer the person was, the more likely they were to tip, and tip well. It was nothing for him to take in an extra $500-$1000/wk in tips and as much as $300 on a single move. Now if you were to move my family, you'd be lucky to see a $5 tip. It's not that we're poor, but we need every bit we have, there's not a lot of spare change. Now that I got that off my chest- It is not that cutting their taxes directly increases the income to the government, it is that the more they have, the more they spend. The more they spend, the greater the demand for new products. The greater the demand for new products, the more new jobs are created. The more new jobs that are created the more new people there are to pay in taxes. The more taxpayers there are the more money generated for the government, see?

Another way to look at it is this: Look at the rich entrepreneurs; the Sam Waltons and Bill Gates out there who have (or had) more money then they could ever spend and yet still spent their money to expand their businesses. This expansion created thousands of new jobs. The motivation behind the expansion though, was for them to make more money. Now let's say you tax them to the point the expansion costs them from extra taxes rather than profits them. Now it is time to retire and enjoy the rich life and not to expand and let us lay people have jobs. Cut their taxes they expand business make new jobs, Raise their taxes close down business, retire, have fewer jobs. As I said before more jobs, more taxpayers, more taxpayers, more money, and us not so rich people just don't have the means to make new jobs like a rich man does. I personally, would love to own a chain of fast food restaurants or retail shops but that doesn't get them built or stocked. Got to have money for that.

Answer 3

Hi,

Interesting perspective.

Our perspective on life normally comes from our experiences.

Perhaps you've had some negative experiences with wealthy people, and that's unfortunate.

I agree there are some nasty rich people, but I've also met a lot of nasty broke people.

People who don't have enough money have been known to steal, sell drugs, cheat, gamble, assault and even murder to get more of it.

On the other hand, the top 5% of income earners in my country are paying more than 30% of the taxes.

And it's also a fact that when taxes are cut for wealthy people they don't "keep it" as such - that is, they don't stash it in a shoebox. They actually spend it and/or invest it.

Extra spending and investing creates jobs and keeps the wheels of the economy turning. It's also where the most welfare dollars come from.

There are very few seriously broke people who help the economy - apologies for being blunt but it's literally true. Being destitute puts a strain on society through extra services like welfare, charity and health services.

The poorest people spend more time in hospitals than the richest people.

Truthfully I am yet to find any redeeming features of being poor, yet there are countless joys that come with being wealthy.

With wealth we can help the poor, we can show people how to build a more promising future for them and their children, we can lift them out of misery and into lives of achievement and increased self eteem and pride.

Broke people - as nice as they might be - can do little to help in a financial crisis. They can add their voice and complain, but their hands are tied.

After the tsunami on 26 December 2005 I was among a group of wealthy individuals who were able to make 4, 5 and even 6 figure donations to help the victims.

Poor people can't do that. What a tragedy.

As for the question "did you ever work for a rich man and try to get paid for it?"

Nobody has ever worked for a broke person - they cannot pay you.

Finally, I believe that people on low incomes deserve enormous tax breaks. They should be able to keep as much of their low income as possible, and it would be a happier world if they were shown how to improve their own lives.

Education is not just the answer to ignorance, it's the answer to poverty as well.

I sincerely trust this helps.

Warmly,

Slav

PS: In the words of Abraham Lincoln "The best thing we can do for poor people is to never become one of them".

Answer 4

Here is an age-old question:

What came first, supply or demand?

This is why rich people need to keep their money. They have their money in BANKS! When you go apply for a loan, the bank is not using its money and giving it to you. The bank is using that rich persons money to give to you as a loan. With this in mind, when you use get that loan and open a new business, you have just created a new tax source and a new job source.

I am sorry, but poorer individuals do not keep their money in banks. They operate on a check-to-check basis and mostly use cash. This money that could be reinvested in the economy is simply being used to pay bills. And since these are the very individuals driving the bulk of government spending, should they not have an equal foot of the bill?

I believe it was Jefferson that said, "For a democracy to exist, there needs to be an educated people."

Nuff' Said.

Answer 5

I've worked for several rich guys and they offer more opportunity than any poor guy could. Rich guys start businesses that create jobs and the income from the business and the employees income is taxed which adds to the tax base and all the wasteful government programs. Rich business owners are highly efficient and rarely waste because they want to earn a profit and create wealth for their families, business, and employees. Tax cuts have never resulted in the country being worse off. In fact look at any chart of the Dow Jones industrial Average and you will find a link between the time tax cuts occurred and a bull market began. A perfect example is the Bull Market from 1982 to 2000. Bottom line is you and I spend our money, save our money, and invest our money far better than the government does, so doesn't it make sense that more of it is left in our hand regardless of whether one is rich or poor?

Answer 6

Cutting rich people's taxes doesn't generate money, but it does create jobs. What's the alternative? The alternative is to let the federal government keep more of the money. That won't create jobs. The middle class will completely disappear if you give most of the money to the federal government, and the only wealthy people you will see will be the politicians working in Congress. Do you believe members of Congress create jobs for Americans? No. Private individuals do that. Why shouldn't they be given more tax cuts if they are creating jobs for Americans? It takes money to make money. I think rich people should be given tax cuts. Companies can't profit if the federal government taxes them too much. Of course, there has to be a limit to how many tax cuts are given to rich people. There are a lot of poor people too. Most poor people are unemployed and have to rely on government programs for help. Taxes are necessary, but to say that rich people don't deserve any tax cuts is ridiculous.

Answer 7

I don't think this question "asker" is real or else he/she may be lacking in basic economic education. One example of wasted tax dollars -- government schools -- woefully lacking in the basics.
Of course cutting taxes for rich and middle class earners alike generates more revenue for the government, even if a rich person didn't use the money he/she is allowed to keep to open a business and directly employ people the fact that they have it to spend or even save or invest generates job and more tax revenue. It's an obvious economic cycle.
This economic law is just as valid as any scientific law. What goes up must come down -- The Law of Gravity. Revenues spent = tax $ increases.

Answer 8

No, if they kept it all to themselves many of us would not be working. Is giving it to the government a better idea? Where would you rather have thier money? personnaly i will take in in the local economy versus the government coffers where it takes 6 dollers to decide how to spend a dollar.
a good example, 2 years ago i worked on a large house in Ct.. This was a 2 year project that overall put 8 million dollars into the economy and employed over 200 people in one form or another for a certain time frame during that 2 years.. Instead of being taxed on that 8 million dollars it was put into salaries and those salaries paid taxes. It also added to the tax base of the local town which in turn kept the money locally to do improvements or whatever in the town..

Give it to the governemtn and they can build a 250 million dollar bridge to nowhere in alaska..

Answer 9

at first if the middle and decrease earnings human beings bare the load of tax's as a replace of the wealthy then they get a huge bite of their pay verify taken out each and every pay day . Many artwork an entire day just to pay that tax . So If we don't tax the wealthy and infamous then the tax burden will fall squarely on the working class .which will provide them much less money to spend interior the financial device . Republican good judgment is amazingly incorrect . because of the fact vast companies relatively do not create many roles and truthfully take that saving to out source jobs . they're public enemy no person as a techniques because of the fact the yankee financial device is in touch .

Answer 10

To roy40371: The simple answer to your question is

"Supply-Side Economics"

Apparently, many people seem to believe in the so-called supply side theory of economics, which if I am right, says that jobs are created by the more wealthy among us and that if they have more money available to invest then they will create more jobs which will help everyone.

But...I believe that there is a flaw in the theory: because you must pay the workers a fair wage or else there is no market for the products you create. I sincerely believe that a demand-side based economics policy would benefit everyone, including business owners more than the supply-side policy.

We need to have a strong market for all of the goods and services that we produce. The more money that people have available to spend, then the more demand there will be for the products and services that business owners can create.