But the first paragraph refutes the headline: "Allowing income tax rates to rise for wealthy Americans would not hurt U.S. economic growth much (emphasis added) in 2013 ..." The CBO did not say, as the headline suggests, that raising taxes on the rich has no negative economic effect. In fact, the CBO actually said that extending the Bush-era rates for all would increase economic growth by 1.5 percent. If, however, the Bush era rates expired for the rich -- but...
Good point, Mountain Rose. I would love to see a detailed example of this. It would make a good blog. It's Economics 101. The rich do not just horde money like fictional Uncle Scrooge McDuck. Money "sitting around" in a bank earns interest because the bank uses that money to earn more interest by loaning it out. And then, more money is poured into businesses as capital (stocks) which earns dividends only if the businesses succeed. And finally, even the extravagant purchases "redistribute" the wealth down the "food chain" from retailer to supplier to manufacturer.
Consider this headline from a Reuters article in The Huffington Post: "Raising Taxes on Rich Won't Hurt Economic Growth, CBO Says."
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