(November 10, 2014 at 11:30 pm)Heywood Wrote:(November 10, 2014 at 11:20 pm)Surgenator Wrote: So the the rich pay a large portion of the tax revenue recieved by the government. What is you point? They also get the most profit, and they should pay the most.
The conclusion of the Bar Stool economics argument is that because the rich pay the lion share of taxes.....when there is a tax cut....it will be the rich who benefit the most. This is an artifact of the system and not because tax cuts are targeted at the rich.
Consider this argument:
Premise 1: People who pay more in taxes benefit more when taxes are cut.
Premise 2: Rich people pay more in taxes than poor people.
Conclusion: Tax cuts will benefit rich people more than they will benefit the poor people.
Here is a more indepth explanation why this bar stool economics is a piece of crap.
The main conclusion about the percentages saves comes from applying a flat tax cut to a non-flat tax rates. To keep things fair, you should not apply a flat tax cut but a marginal one that matches the current system.
