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Originally Posted by jimotis4heisman
thats what happened this year with the "stimulus" package. they only gave out checks to those who make under x dollars (dependant on whether you were single or joint filing). not it didnt work. james millionaire and joe plumber/six-pack/electrician/etc will both spend the money, save the money or invest the money. their is no wealth creation that you see from a business. businesses create wealth.
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the problem with the stimulus plan came because the government was giving back money it didn't have. The reason a higher tax on businesses and a lower tax on the middle class is different is that while "joe six pack" (god i hate that) gets tax relief the upper brackets get taxes raised. We're taking money from people who don't need it to purchase goods (because they already have expendable money) and giving it to those who do need it to have the purchasing power to purchase goods. This allows the government to distribute funding to the middle class while avoiding going deeper into debt, to the peril of the country.