Quote:
Originally Posted by VladtheImpaler
Uhhh, what Reaganomics response? I said that tax hikes are inevitably borne by the wage-earning middle class, as the poor don't pay taxes and the rich can take advantage of various breaks and incentives to reinvest their money... and that taxing the middle class would cause less consumer spending, and hurt the economy. Is that Reaganomics?
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To be fair... if you're increasing taxes to people who make over 250k per year, that isn't really the middle class.
Saying the rich can simply "re-invest" their money is also a bit of a misnomer. I can tell you that most people making 1+ million a year aren't stuck paying 0% tax, because they've given to charity, invested, etc. There are limits to those types of things. I do agree that there are a lot of ways to avoid some taxation, but not all.
The key to an effective tax strategy is pretty simple if you want to stimulate the economy - tax the people who aren't spending to their means and lower taxes for the ones that are (yes I do realize it is a lot more complex than that).
Cedric Millionare's money doesn't do a lot for the economy if it sits in a trust for 70 years.