Why should the rich get tax cuts?

Question

This isn't some kind of political statement, but a genuine question. I'm currently studying economics and I'd like to know if there's any underlying economic reason for the rich to get tax cuts, such as the recent Bush tax cuts. I mean, it makes sense to me that the rich should be taxed more, and the poor taxed less, but I'm sure it's more complicated than that.

Answer 1

I believe the argument says that the rich will create new businesses and employ more people so they deserve a tax break. Personally, I am against it as they are taxed the least. Like the song goes "The rich get richer and the poor get poorer...."

Good question. Best wishes.

Answer 2

I personally feel that no one should be punished for making more money. I feel that everyone should be taxed the same. It is unfair to give the poor a bigger tax break than someone that makes a little more. If the rich are taxed more than that puts them at the level of the poor. People that make more money deserve their money as well as the poor. Just because you make more does not mean you have more. It is true what they say "The more you make, the more you spend." I am not rich but I am definetly no were near being poor. I feel that I have worked hard to earn my degree and make the amount of money I do. If the poor feel they deserve more such as tax breaks, maybe they should go out and do something about it. Go back to school, get a degree and stop working at low paying jobs!!

Answer 3

The rich find was around taxes such as creating a business and using the business to pay for stuff and get the items tax exempt.

The idea is that the rich if they do get tax cuts, they will help the poor more by buying better equipment for work and in turn more items and all that stuff, helping the economy.

Answer 4

it is very simple the rich are not getting a bigger tax cut just look at the amount of taxes paid by the level of income most people who fall into the poor of low income really pay no taxes because with all the credits they are allowed to receive they get back all taxes they pay to the government where as those in the upper income brackets pay more into the coffers in the form of taxes and they also carry the largest burden of of the tax base so hence they receive more back in the form of refund if you don't believe me just go look at the actual numbers it may surprise you to find out that the majority of the tax burden falls on less then 5% of those who pay taxes: btw companies and corporation don't pay taxes it is passed along to the consumers :so please research a litle deeper just a note bushes' tax cut really did help the economics of the country as consumers had more control over their money and spent it as they saw fit and this spending put money into the economy

Answer 5

While morally it might seem that giving the rich tax cuts is a bad thing, this misses a lot of the situation.

Rich people already pay higher tax rates than anyone else, at least in my country (Australia).

Rich people tend to spend more money than poorer people, because they have sufficient funds to spend on what they like. THis spending is very good for the economy.

Richer people tend to employ more people, as well, which creates jobs which otherwise might not be created. This also helps the economy.

The poor are not overtaxed. Taxes pay for things that we all use, like roads, schools, hospitals, the police, and other essential services.

Why shouldn't the wealthy, many of whom have worked hard to earn their wealth, get tax cuts as a reward? They are the people who own investment properties and businesses, which provide accomodation and jobs to others who are less well off.

We live in a wealthy westernised world. People who squander their money on crap like caffe lattes and magazines every week, instead of investing it, deserve to pay a higher rate of tax, because the government has to look after them in their old age through pensions. If they took some responsibility for themselves instead of expecting the government to take care of them, they wouldn't have to pay such high taxes.

Answer 6

First you need to define rich. In our society we consider anyone who makes more than we do rich.
The graduated income tax was designed to draw more heavily from larger incomes. Unfortunately,due to the various deductions it very seldom works properly. As an example; a single person who makes 30k per year can deduct 1personal exemption and the standard deduction. {sounds fair] However his co-worker;with the same income ; may have an unemployed spouse and way to many children. This person can not only deduct himself but also each and everyone of his children and the spouse[ So not only is this person selfishly reproducing ,he is doing it at the expense of his coworker.
There is no fairness in a system that puts the burden on a childless individual.
The only fair system is a flat rate tax which provides for a minimum untaxed living allowance. Beyond this amount all income should be considered taxable.

Answer 7

The rich are taxed more - not only a larger amount of money, but a bigger percentage of their income. Therefore if everyone gets a 1% tax break, the rich get more money back, and folks scream that the rich got a bigger share of the tax cut.

Well of course they got a bigger tax cut - they had a bigger tax bill to begin with. But everyone in my example got a 1% cut.

Now pretend that the rich got a 1% tax cut, but they're paying a 5% more to begin with - so they still pay 4% more of their income, yet again everyone screams that these are tax cuts for the rich!

And by "rich" we're talking about folks with a family income of what, $100,000? That's 2 incomes of $50,000. The median income is only $45,000 or so - so everyone above that must be "rich".

Answer 8

Unless Bush has some magic plan I don't know about, I see no reason to have tax cuts for the rich. If you make the most money you should pay the most money, and in the same percentage that everyone else has to. End of story. That's what our tax system is supposed to be built on

Answer 9

The rich spend their money, they create jobs, and they are, for the most part philanthropic. None of us, rich, poor, middle, should not have to work like dogs to support a bunch of government do nothings. It is our money, yes, we should pay something, but, it should not be excessive. When taxes are cut, the economy runs better, when taxes are raised, the economy becomes stagnant. The only ones who want to tax the rich to death are the ones who are suffer from class envy.

Answer 10

Well as i see it (meaning im not of rich status)
who are the people who provide masses of jobs in this country?
the rich do
and by allowing them to have more money to be able to invest helps our economy by allowing them to pump money into the economy, and create more jobs among more things

i do see what you mean though that the poor should be taxed less but also think about it this way

why would we penalize people for being successful

'well once you make more than 500,000 a year students your taxes double'

thats ridiculous and the top 5% of the nation's wealth already pay over 50% of your services through taxes!

but thats just how i see it