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RE: Basic Income - Study finds Intrinsic Link between Money and Well Being.

in #cryptocurrency7 years ago

Some economists and policymakers often assert that reducing marginal tax rates would spur economic growth.9 This could work through several mechanisms. First, lower tax rates could give people more after-tax income that could be used to purchase additional goods and services. This is a demand-side argument and is often invoked to support a temporary tax reduction as an expansionary fiscal stimulus.

http://graphics8.nytimes.com/news/business/0915taxesandeconomy.pdf

But we know that the myth of job thecreator is flawed, let alone the myth that they could ever consume a bit more of that pie slice if the slice is bigger.

Second, reduced tax rates could boost saving and investment, which would increase the productive capacity of the economy and productivity.10 Furthermore, some argue that reduced tax rates increase labor supply by increasing the after-tax wage rate. There is substantial evidence, however, to suggest that labor supply responses to wage and tax changes are small for both men and women.1

Not only that but it goes to reason since the demand isn't increaseed then production won't ever increase or if there is increase it's marginal since the demand is marginal. Demand dictates what gets produced after all.

The conclusion of the study is that lower tax rates for the rich increases income inequality and concentrates more and more wealth in the hands of a few. It doesn't make the pie any bigger and it leaves less for everyone else to share. As in the above video, all that wealth that is stashed away will never spend or produce what it would if it was in the hands of many.

This is exactly what is happeining with the Reward Pool rape in Steem, a few funnel the rewards conveyour bellt style into their pockets while everyone else suffers the conequences of less rewards to go around and a loss of confidence in the rest of the community since many think being that greedy is ok and many think that greed like that should be punished, and deincentivized, and for much of the history, the very .01% were taxed over 95%, which many cannot reconcile as fair because to them fair means taking however big of a slice you can afford, regardless of the consequences.