cutting taxes
From:
Glen Schumann
Date:
Oct 09 17:23 UTC
Short link
>-----Original Message-----
>From: Mike Fratto [mailto:mfratto@yahoo.com]
>Sent: Thursday, October 09, 2008 9:57 AM
>To: <email obscured>; Lee
>Subject: Re: [MN-Pol] cutting taxes
>
>Lee is correct to a point.
>
>Cutting taxes and any level can increase total taxes
>collected. However, in order for this to happen, the people
>who receive the tax cuts have to spend the additional
>disposable income.
This is not correct. Increased income taxes from reduced income tax rates
happen when people chose to earn more income because they get to keep a
larger share of that income. Spending has nothing to do with increased
income taxes (except as spending raises the incomes of OTHER people).
>The arguments made by the Republicans in supporting the
>trickle down effect of the Regan tax cuts just don't hold
>water. People who already have enough money to meet their
>basic needs and all their wildest wants will not spend any
>more money just because they have lower taxes. Arguing these
>cuts will be invested and thus create a larger economy is
>again spurious.
This is a complete misunderstanding of human nature. Many people earn more
money just because they can or to overcome a challenge or to meet a goal.
People seldom stop earning money because they have "enough". This is
especially true of those with the highest incomes.
Glen Schumann
Winona, MN
.