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Trickle down doesn't support private employment, it just enriches wealth holders. Lowering cap gains taxes isn't convincing any new rich people to throw more mo
by verall 6y ago
Trickle down doesn't support private employment, it just enriches wealth holders. Lowering cap gains taxes isn't convincing any new rich people to throw more money in the investment pool, it's just increasing the amount margin that capital can extract. Returns are so low that rich people just throw the money they make back into the market anyways, but now we have a ton of capital anyways chasing little returns, which creates speculative asset bubbles.
- sokoloff 6y agoIt’s certainly theoretically possible that people generally don’t consider the effects of taxes and after-tax returns in the inter-linked areas of investing, employment, and new business formation activities, but that doesn’t match my own personal experience nor the behavior of others I see making those decisions. I find it incredibly hard to believe that increasing the amount by which we tax away the prospective rewards of being successful in a business doesn’t have a negative effect on propensity to form new or expand existing businesses.