Originally posted by OutKast Searcher
reply to post by camaro68ss
Your "answer" talked about corporate tax rate...not individual tax rate...that is an entirely seperate conversation.
We are talking about income tax breaks for wealthy individuals.
Answer me this...what creates a job...a demand for that job...or a rich person having extra money laying around???
A job is created when a good or service is demanded. That good or service then must turn a profit to pay for that wage and all cost associated. What do “rich” people do? They invest their money. They buy stocks, intern giving money to companies for an ownership share of the company. Companies then uses that extra capital and open up new markets or branches.
A new branch is now planned to be opened. They must build the building, hire a crew to frame it, hire plumbers, electricians, and all other trades that go into building a building. Those trades must buy materials to build the building. They buy the materials from local material distributes intern creating a demand for material distribution jobs to service the locations and distribute materials.
The material distributers then need to fill their locations with raw goods. They buy lumber, piping, copper wire. The copper wire is crated in a manufacturing plant that employees people to make copper wire and copper piping. The raw copper to make the wire must be purchased from a copper mine, creating a demand for copper miners to harvest the raw copper from the earth. That copper must be shipped from the mine to the manufacturer and crates demand for transportation and drivers.
A driver must have a truck so he purchases a truck from a trucking lot creating jobs there. The trucking lot then purchase the trucks from the factory starting the supply chain all over again.
Only the privet sector can create value, create a tangible good. You can say government crates jobs and build roads. True, but those jobs don’t create revenue, permeate jobs, or a non-diminishing return tax payer.
Another avenue is Rich people buy big toys. They buy privet jets. Those privet jets must be made in a factory starting the chain all over again.
Rich people stash their money in banks creating capital for those bank so they can lend money.
edit on 23-8-2012 by camaro68ss because: (no reason given)