Do tax breaks to the rich mean more businesses, more jobs & more money trickles down to the working poor?

Question

Do tax breaks to the rich mean more businesses, more jobs & more money trickles down to the working poor?

Answer 1

In theory yes, a business owner who is considered rich is generally the type of person who wants to be richer.  They will take the money they make and reinvest it into their business by hiring more employees, buying more product to make or distribute their product.  All of this grows not only the rich persons business  but other business that they buy and sell to.

If someone wants to take your money what would you do with it?  Would you hide it or just give it up freely and openly with a smile?  You would probably hide it and not spend any of it.  

Tax breaks for the rich is a class warfare term used to make somebody who is rich look evil and greedy.  Have you ever been employed by somebody who is poor?  

Answer 2

NOT EVEN CLOSE.

Answer 3

We have a progressive tax system. The more money you have the more taxes you pay. The 'tax breaks' for the rich are more or less disingenuous propaganda that do not reflect the nature of the US tax policy. If anyone disagrees please explain exactly how the 'tax breaks for the rich' work? How and what legally qualifies this type of tax break?

Answer 4

No. All the jobs in my career have been offered by poor people.  

Answer 5

In theory, that should work, but I have yet to see it work in the real world. I don't see the economy booming from the Bush tax cuts.

Besides, a progressive tax sysem is an automatic stabilizer for the economy. When the economy starts to slow down and incomes drop, people pay a smaller % of their income to taxes, just the thing to help struggling families. If there are more tax breaks for middle America, the effect is immediate (not trickled down), and when the middle class consumers buy more, businesses prosper more, and can hire more workers.  

Answer 6

The question is, will rich people spend more if they don't pay as much in taxes? And if they do, that extra money will be added to the economy that in turn will spur business growth, hiring, employment, etc...

My answer is yes. Rich people know they have two choices with their money. They can either invest it so their money is working for them, or spend it and enjoy the fruits of being rich.

Most rich people do both. So if they get tax breaks, that money will end up back in the economy through either investment or consumption.

Yes, Trickle down Economics works. But if you are expecting a check in the mail, forget it. But if you expecting the Employment section of the newspaper to expand, then yes it works.

Answer 7

This is  old republican propaganda.Enron has not payed taxes due to all the tax loopholes. It created a monopoly on energy that cost jobs.The problem with tax breaks for therich is clear today. the corporate giants in pharmaceuticals,oil are receiving record profits. this parallels the growth of a billionaire class( less than 1%) who are doing better than ever in history.Unfortunately, at the same time,we are experiencing a recession, a freeze on wages across the economy,growing unemployment,a housing crisis, record bankrupcies.There is no evidence that the rich nor corporations create more jobs with their increased wealth.The  wealthy tend to buy luxury items then once saturated with consumer goods, they invest in the highest yielding stocks,foreign or domestic or lately gold.Corporations buy out smaller competitors which makes for restructuring and a loss of jobs,most always.

Answer 8

I'd say yes

What creates jobs and businesses is concentrations of wealth.  So those with lots of money have more money or get incentives to spend their money a certain way  and they do it they can create new businesses and jobs.

Think of a world where everyone had exactly the same amount of money and no-body had more (the old USSR was like this sort of).  How would someone get enough captial and hutzpah to start a new store or resturant or manufactuirng plant.  Imagine how much capital it takes to build airplanes for example, certainly wealth concentrations are important

Remember that 95% of all federal income taxes are paid by households that make >$50,000 per year and 25% of it is paid by those in the top 10% (you can look these things up in IRS records).  So the "rich" are paying all the taxes, who else could they cut?

I used to live in California, during the big budget crunch under Gray Davis.  In that year they ran a 36 Billion dollar defecit, half of this was caused by just 1500 tax returns from individuals from one year to the next.  So, think about it, due to stock market conditions being poor those 1500 persons did not pay $24 million in state tax EACH.  Those folks were paying 25% of the state income taxes, they are VERY important to everyone.

Look back at history when Ronald Regan cut the max tax rate from 70% to 30% and overhalled the tax system.  The economy rose from the c**p it was in and we got the go-go 80's and huge expansion of the economy.  The last round of tax cuts by Bush Jr. actually RAISED tax revenue to record heights.   The lease productive place for money is with the government, they remove money from the enconomy and spend it in very inefficent ways....cutting taxes always leads to economic expansion.