why tax cuts for the wealthy is a good idea ?
My Best Yahoo answer is by Mukund;-
“Its the wealthy who create jobs,,,,,its the wealthy who own buisnesses and run economies,,,,,
Across the world,,its the wealthy who pay most [major portion] of the taxes to the governments,,,, poor or middleclass, contribtuion is moderate,,,,
Dubai and Monaco have become worlds hubs of the super rich ,,,because they don't tax you on your incomes,,,,no income tax nothing,,,,,hence some of the wealthiest people prefer to park some of their money in these countries,,,
When governments reduce taxes on the rich,,,,,the rich will use that money to reinvest in the economy..increase production,,,increase employment opportunities for poor and middle class,,,,hence the GDP of a nation expands due to reduction in taxes ,,,,
if excessive taxes are levied on the very wealthy,,,,even foreign investors will avoid that country,,,,,foreign direct investment,,foreign portfolio investment ,,hedge funds ,,etc etc will avoid high taxation countries ,,,,,which in turn will lead to a reduced economic size of the nation ,,,and other problems as well,,,,
its the wealthy and the super rich who always decide a fate of a country economically and otherwise,,,,,,,,,,,,,where as the poor and middle class decide the fate of a country only politically [the power of vote ],,,