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That's not how economy works. If all that money is spend the receivers pay taxes and spend the rest and that receivers also pay taxes and spend the rest and so
by croes 2y ago
That's not how economy works.
If all that money is spend the receivers pay taxes and spend the rest and that receivers also pay taxes and spend the rest and so on and on.
All these tax money is once again spend and the circle continues.
Economy is about flow not sum.
- alecco 2y agoBusiness needs to profit to exist in the long run. If costs are above revenue it has to close eventually. The bigger components of costs are usually payroll and tax. And a part of payroll also goes to government systems. This is why high tax countries have terrible GDP. Unless a good part of the tax goes to subsidize companies in some way. And subsidies are very hard to do right and most likely bring corruption into government.
- croes 2y agoScandinavian countries have high taxes and a high GDP, same is still true for Germany. Many low tax countries have terrible GDP too, so it's not the tax. And businesses needs customers. More middle class customers support more businesses than few billionaires. If you spread the wealth it benefits the economy and helps creating new businesses. Companies like Airbnb, Uber, Netflix etc. don't satisfy a need of billionaires. So you either can hope a billionaire founds a useful company or give wealth back to the people and let the market do the choosing.