Quote:
Originally Posted by MAXUM
There is an important distinction to make here, it's belongs to them and what they do with it, spend it or not is up to them not you, me or the federal government! However this does beg the question, if they don't spend it what do they do with it that is so harmful? After all they are either saving it or more likely investing it. Where is the down side to that? In fact whether saved or invested they will be taxed on gains anyways.
What fuels the economy isn't all about retail sales!
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Maxum--an excellent question and a great point. I agree that it's all about retail sales.
As BiggD points out, the rich save much more than others as a percent of income. There's plenty of data on this, and it all points in the same direction.
As you can see in the link below, the middle quintile saves 11% of their income and the top 1% saves 51% of their income. So if a trillion dollar tax cut goes to the middle class, $890 billion gets spent, driving retail sales. But if we give a trillion dollar break to the top 1%, only $490 billion gets spent retail. So the best way to drive retail is to give the tax break to those still struggling financially.
http://www.businessinsider.com/chart...e-level-2013-3
01-01-2018, 08:30 AM
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