Quote from: SmartyPants on January 06, 2012, 07:12:21 PM
I want to say more discretionary income is best in the hands of the rich, but that isn't true. The middle class is the country's biggest source of consumption, while the wealthy tend to use their discretionary income on investment. Low income earners have very little effect on consumtion and investment. A temporary tax cut won't help the economy, because it won't change spending behaviors when they their taxes going to go back up. If anything, it will slightly help people pay off their debt. Permanent tax increase on the other hand make people feel poorer and less willing to spend on consumtion or investments.
Also, it seems hypocritical to say someone else should pay more, while asking for a tax cut for oneself.
That's true-but who says the governments job is to make the economy as efficient as possible? Sure, an efficient economy is good, but isn't it worth sacrificing efficiency in order to provide necessities for others?
Also, Craig, it's a common misconception that the Bush tax cuts were made for the rich, in reality they shifted the tax burden towards the rich. (Data comes from the CBO)