Here's what I was thinking - sm Posted: Sep 12th, 2017 - 9:04 am In Reply to: I would prefer no tax cuts to anybody at this - time. I think I understand
Taxes are always a percentage of that year's income, not a percentage of someone's current wealth.
The wealthy don't need to make money every year like the middle class and poor do. They can rely on savings. They can structure their investments so they break even with expenses. They can pay accountants who know how to play with the tax code so they pay as little as possible.
The middle class and the poor don't have these options.
If personal taxes are too high the wealthy may assume that it's not worth making a lot of money this year. Then the government gets nothing or very little from them.
The opposite is true if personal taxes are low. Then it is worth making money and investments go up, jobs improve, the economy grows. The US gets more tax revenue from more people.
An improving economy means more jobs for more people and more tax revenue.
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