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Originally Posted by CosmicTang
The theory is that by cutting taxes for the rich they are encouraged to invest capital in business ventures that will help the job market and spur on the economy. It's not unreasonable.
However, in the current economic climate anyone saving money via tax breaks is more likely to stash that money in the bank, or under their mattress, rather than risk it investing.
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Not only is the economic climate what it is, but we also live in a global economy...so you can cut taxes for the rich and they can invest their money, in China, or Russia, or Brazil or India etc.
If you want a guarantee that the money will be invested here, the government can keep that money (instead of cutting taxes) and invest it here in roads, bridges, high speed rail, broadband lines, etc etc etc.
Quote:
Originally Posted by CosmicTang
The reason republicans are against the tax breaks for low income workers is because a large segment of them didn't have to pay taxes. They got a full refund due to their income level. Giving them a tax break on top of a full refund is like giving them free money. That's how I understand their argument.
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That's their argument, but it's bullshit.
Those people pay payroll taxes. As a matter of fact, a majority of Americans pay more money in payroll tax than they do in income tax.
They may as well say these people don't deserve a rebate because they didn't pay capital gains tax or dividend tax or excise tax. Just because they're exempt from one certain kind of tax doesn't mean they don't pay a big share of their income in taxes.
And even if that weren't the case, isn't the purpose of this bill to stimulate the economy? Last I checked it wasn't a bill about making the tax system "more fair".
