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simple macro economics
the act of lower taxes increase the money supply in the economy.
it doesn't matter if the money supply is spent or saved it still directly in the economy.
Capital gains is targetted because it provides the secondary effect of spuring investment which allows companies to get financing without having to borrow the money.
the end result is that there is more money in the banks (which means lighter lending requirements which minimized the credit crush the current failures is causing)
if it is spent shemp already cover that point.
if it is invested then companies can shift debt based (which is hindered currently) to equity based capital, which allows them to maintain or expand their business. Which protects jobs /creates jobs.
that and the fact that whenever taxes are raised on the rich (boat tax) it results in people not purchasing that luxuary and putting the people who make that stuff out of work. The assumption is that if you do the reverse, it will have the opposite effect. Convincing people to risk their money in the stock market, needs some sort of external insentive and that is what a capital gains tax cut does.
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“When crimes occur through the mail, you don’t shut the post office down,” Steve Wozniak
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