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Old 05-22-2003, 05:19 AM  
FlyingIguana
aspiring banker
 
Join Date: Mar 2002
Location: toronto
Posts: 10,870
Quote:
Originally posted by grogan
investing helps the economy

he'll just make more and more money, and get taxed on his profits anyway

more money pumped into companies means they have more capital for hiring/expansion


those newly hired earn money (which gets taxed) and spend money (which helps the economy)
states have to raise taxes to offset the higher yields that they have to pay on their debt. this gets passed on the citizens in either higher taxes or spending cuts.

there are better ways to stimulate the economy than giving a tax break to the wealthy. especially when it increases an already large deficit which could mean higher interest rates and an even lower dollar. will the spending help? probably, but the potential risks seem to outweigh the rewards.
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