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My concern with these tax cuts is that they won’t stimulate the economy because they’re too biased toward people who won’t spend the money. A large tax cut on l

by api 2y ago

My concern with these tax cuts is that they won’t stimulate the economy because they’re too biased toward people who won’t spend the money. A large tax cut on lower and middle classes would stimulate the economy since the money would be spent.

ty6853 2y ago
It does seem to be a complicated calculus. At small scale, I come from a depressed Midwestern area. They lowered/cut property taxes but only for rich corporations like Amazon, to bring them in. End result was massive increase in employment (like going from cornfields to warehouses everywhere) and wealth for locals, in a way that cutting for the middle class would not have done. From an egalitarian standpoint I would prefer flattish taxes but from a practical perspective in my hometown regressive taxes have led to more prosperity. Although lots of billionaires are pure parasites, they're also often the ones making the largest capital investments and using tax and access to flow of capital to decide where to put it.
- api 2y ago
  You’re describing targeted tax breaks and incentives as industrial development policy, which can work. I’m talking about broad tax cuts for the rich, including those in areas that do not have such problems. These tax cuts are apparently to be paid for by deficit spending, which is insane. There is no way you could cut enough from the US budget to pay for them without winding down the entire US military and cutting things like Medicare and social security that people have paid into their entire lives. That’s wrong, and will cause riots.
- hello_moto 2y ago
  Quebec Amazon warehouse recently was about to form Union and Amazon decided to shutdown the facility, citing other random reasons. Suddenly 1700 jobs are lost. Amazon is known to have cutthroat model be it internal warehouse and delivery employees or third party (they monitor third party delivery like a hawk monitoring its lunch). I'm hoping there's a middle option where Government tax the super rich and stimulate local economies by creating infrastructure jobs.

by api 2y ago

ty6853 2y ago

It does seem to be a complicated calculus. At small scale, I come from a depressed Midwestern area. They lowered/cut property taxes but only for rich corporations like Amazon, to bring them in. End result was massive increase in employment (like going from cornfields to warehouses everywhere) and wealth for locals, in a way that cutting for the middle class would not have done. From an egalitarian standpoint I would prefer flattish taxes but from a practical perspective in my hometown regressive taxes have led to more prosperity. Although lots of billionaires are pure parasites, they're also often the ones making the largest capital investments and using tax and access to flow of capital to decide where to put it.

api 2y ago
You’re describing targeted tax breaks and incentives as industrial development policy, which can work. I’m talking about broad tax cuts for the rich, including those in areas that do not have such problems. These tax cuts are apparently to be paid for by deficit spending, which is insane. There is no way you could cut enough from the US budget to pay for them without winding down the entire US military and cutting things like Medicare and social security that people have paid into their entire lives. That’s wrong, and will cause riots.
hello_moto 2y ago
Quebec Amazon warehouse recently was about to form Union and Amazon decided to shutdown the facility, citing other random reasons. Suddenly 1700 jobs are lost. Amazon is known to have cutthroat model be it internal warehouse and delivery employees or third party (they monitor third party delivery like a hawk monitoring its lunch). I'm hoping there's a middle option where Government tax the super rich and stimulate local economies by creating infrastructure jobs.