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by karagenit
1789 days ago
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Sure, giving anyone a tax break will enable them to spend more and generate economic activity. However, generally reducing taxes also requires reducing government spending, which means less investment in things like infrastructure (which tends to create lots of middle class jobs). Basically the two end up cancelling each other out, so the result is just worse income inequality like the study showed. |
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Wealthy people invest in things that wealthy people want to invest it.
(Democratic-ish) governments, for all their many issues, tend to invest in things that can be justified to much broader populations (yes, I know, lots of exceptions to prove the rule)
Increasing private investment and decreasing public investment isn't a "cancel each other out" situation.