skeeter,
>the truth is, sometimes tax cuts for the rich makes sense and sometimes tax cuts for the lower classes make sense.
since you are such an economic guru, i'd appreciate your insight into when trickle down makes sense and when trickle up makes sense.<
Lower taxes and lower government spending for everyone should always be the goal. I don't believe in "managing" the economy. I think the tax burden should always be fair, but obviously people have different definitions of "fair".
When you lower taxes on consumers (typically the lower middle class and poor), you get a "short term" economic benefit because they spend the money. But over the long haul, consumption is not a good thing.
When you lower taxes on savers and investors (upper middle class, rich, business) you don't get as much short term benefit but you get a "long term" economic benefit because they save some of the money. It is increased savings and investment that increases productivity, leads to new businesses, new jobs etc...
Economically, the idea is to use capital as effectively as possible. In the vast majority of cases, that means the only things that should be done inside government are the things that can't be done privately.
Unfortunately, some people are not blessed and others have misfortunes in life etc....Those people could be taken care of via charity (which would be my preference because of the greater freedom of where the dollars go) but if there aren't enough resources via charity, I have no problem with using government in a limited way.
|
