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One big reason is that people who don't have much money tend to spend what they have. The very rich tend to invest their money, frequently overseas. So by redis
by gizmo 12y ago
One big reason is that people who don't have much money tend to spend what they have. The very rich tend to invest their money, frequently overseas. So by redistributing wealth you give a direct boost to the economy by transferring money from people who won't spend it to people who do.
Taxation in the States is at an all time low, and a handful of decades ago the US has much higher taxes at the top and much bigger growth. So there's also plenty of historical evidence supporting the case for redistribution.
There are also a number of moral arguments (which I think are much stronger).
- blue11 12y ago> Taxation in the States is at an all time low Not true in 2014. Obama raised a number of taxes for the top bracket: Ordinary income: 35% -> 39.6% Capital gains: 15% -> 20% Medicare tax: 1.45% -> 2.35% Meanwhile in California: 10.3% -> 13.3% Marginal taxes and the top for residents of California are: 39.6+2.35+13.3 = 55.25% The number is similar for New York City. You have to go back to the Reagan's first term to find higher tax rates. Now all we have to do is wait for the growth.
- BigTuna 12y ago1. Presidents don't raise taxes. 2. There are far more loopholes and exemptions than there were in Reagan's first term.