Do tax cuts for the wealthy boost economic growth?
This has been a very important question for quite some time. Those on the left call the belief that tax cuts for the wealthy benefit society as a whole, “trickle-down economics.” In their view, these tax cuts only serve to increase inequality and reduce the amount of revenue the government takes in.
On the other hand, supply-side economists believe that cutting taxes on the wealthy, in addition to everyone else, has beneficial effects on the economy. Specifically, these economists believe that tax cuts for higher income people will lead to increased savings, boosting investment, resulting in higher economic growth.
Keynesian economists, on the other hand, tend to see savings in a negative light. They believe that a dollar’s worth of tax cuts for lower-income people has “more bang for the buck” than tax cuts for the wealthy since the former…
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