Noteworthy! Every tax-cutter dreams about all the investments the rich would do, if only the government would let them more money. But this claim is not backed-up by evidence and I think it’s not even rational to assume. Let’s say a rich person, which already has virtually everything he can think of buying, instantly has more money at his disposal, what is he likely to do? Most probably he goes to see his bank manager (so at least he creates a job at a bank). The rest of the money he will probably invest in some emerging market without creating any extra-jobs in his home country. Obviously, he is going to invest where business outlook is good, not in his crisis riddled home country. Now, think the state takes some money away from this rich person and give it to 100 poor jobless persons. What are they going to do? They get some new shoes, maybe they go to the cinema or make a trip to a leisure park. That money is almost certainly spent at home for activities and goods that wouldn’t be bought otherwise.
This is a somewhat simple but not necessarily wrong wrap-up. Fact is, the big majority has an interest that rich people pay a bit more taxes. Unless, of course, the majority plans to get rich itself and accordingly votes as if they had already won a lottery – against their core-interests.
Source: Foreign Policy
