Why tax cuts are not always good:
a) They ignore the benefits that flow when the taxes are spent to do useful things for most people, such as provide open insurance for sickness, support for loss of work, public parks, museums, libraries, useful science and medical research projects, support for developing companies, courts, non-commercial broadcasting, old age pensions etc… Life without these services would be much harder.
b) It does not necessarily encourage wealthy people to do more work – they just got a massive pay increase for doing nothing (or political agitating), and tend to think getting tax cuts is better than working harder or smarter.
c) There is no evidence of a correlation between high tax rates and low rates of ‘growth’ or low living standards for most people. In fact poor countries tend to have much lower rates of total taxation than the rich ones.
d) Tax cuts are popular not because they work, but because high income, and hence powerful, people and organisations end up with more money for nothing, and low income people end up with lower benefits, and hence have to work more for less. It is a system which makes life worse for the majority, but cements power for the wealthy.
Tags: Disinformation, economics
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