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Why does Bush's plan on his stimulus to revamp the economy only give the already rich people more money?
DUH!
7 Answers
- sdvwallingfordLv 61 decade agoFavorite Answer
There are a couple of reasons, and they are not necessarily what you suggest are theft.
First, it is a funding pillar of 'supply side economics' that the government should use federal monies to put resources into the hands of people who have proven that they know what to do with the money. Specifically, if you give money to a person who is already rich, he is likely to invest this into capital investments for a new or expanding business which means expanding the economy and creating more jobs and longer-lasting jobs; conversely, if you give the money to a poor person, he is going to spend it on immediate gratification and the money will have only extremely temporary stimulus to the economy.
Second, the people who are richest pay the highest tax bracket and pay on a larger amount of income, so they pay the most taxes. Why should a person who pays $1000 in taxes get a bigger return than a person who pays $100,000 in taxes? Because he needs it more?
It was explained to me a long time ago by an accounting major, that demand and need (in economic terms) are definitely different things! Increasing demand helps everyone, decreasing need helps only certain individuals.
Source(s): Somehow, I think it will take a Festivus miracle for me to win Best Answer on this one! - 1 decade ago
Let's just hope we get a minimum of smoke and mirrors with this one. Though the idea has yet to be passed by congress I'm mostly interested in how the Federal Government can give tax breaks to small business. I own a small business and I get taxed the same as any other individual. There is the smoke. It's the local governments that have the strongest influence on the survival of small business.
Now, you ask why does the tax break give the rich more money? Well the already rich govt officials believe that if you give breaks to the rich (themselves) then the rich will invest that money and create more jobs. Unfortunately for you and me they invest in Asia instead of the USA. But don't worry, the rich have made lots of money sending our jobs overseas so they are doing OK. Besides if the govt gave us back some of our tax dollars we would just blow it by paying on debts or buying Chinese made products at wally world.
I would rather the money go towards educating the American people on why we must buy American made products.
- Mark ALv 61 decade ago
From the information that has been released so far, it will be a "rebate" type situation.
If you PAY taxes (like the "rich" that you like to use in your example), you'll get money back
Whether or not you get anything if you DON'T pay taxes is being considered as well.
Now run along and play, Mom and I need to talk "grownup" stuff.
- Anonymous1 decade ago
It better not! From the media exposure given to this so far, the consesus appears to report that Bushes own party is trying to wiggle and weasel in some "business friendly" incentives within a proposal that actually does intend to benefit the middle, working, and underpriviliged classes.
See how long this takes. Betcha longer than they would allow the average taxpayer to payup after April 15th.
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- Anonymous1 decade ago
How do you figure? If every taxpayer in the country is going to get a kickback, and small business and new business are going to get a major tax break, and welfare and food stamps are going to be increased it sounds to me as if he's pretty well covered the bases......
- Anonymous1 decade ago
How do you figure that? Oh yeah, everybody that earns a living is "rich" right?
- Anonymous1 decade ago
That isn't true. No details of the plan have been released.