Widdekind
Member
- Mar 26, 2012
- 813
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All people pay (about) the same grocery bill. So, wealthy people have allot more money left over, as (official) "savings". In the absence of taxes, those "savings" are lent to (potentially profitable) businesses, who expand, hire workers, and grow the economy. But taxes take those savings, for government (Public sector), and from businesses (private sector)....punitive nature of the progressive tax code...
Mathematically,
C+I+G+NX = GDP = C+S+T
I + G + NX = S + T
As taxes increase, savings decrease. Government takes the taxes, leaving less for business investment. Progressive taxes specifically target US "savings", specifically targeting the US private sector (the "Standard Oil" phenomenon). US business is weakened; provides fewer jobs; the US populace turns away from business & industry; towards Government.I + G + NX = S + T