In response to:

So What If Taxing Rich Hurts the Economy?

Mountain Rose Wrote: Nov 22, 2012 1:10 PM
I have been trying to explain my "progressive" friends how taxing the rich hurts the poor. I have tried starting several small businesses, and each time was thwarted when downturns in the economy kept rich people from buying my products or from using my services. When a "rich" person in Los Angeles (Jerry Brown thinks $250,000 is rich) has his taxes raised, he still has to pay his mortgage and his bills, so he cuts back on "non-essentials," such as going out to nice restaurants, shopping at artsy boutiques and having regular massage. He also might have his son mow the lawn instead of the guy with the lawnmower in the back of his aging Toyota truck. He might clean the pool himself instead of hiring a pool service. The list goes on and on.
Mountain Rose Wrote: Nov 22, 2012 1:12 PM
In the end, the homeowner still has his nice home and a decent lifestyle, while the businesses he has stopped patronizing go under.

The Left have no idea this is going on, because they have rarely had to work hard for what they have. Once they do, they start sliding to the right.
Henry159 Wrote: Nov 27, 2012 12:29 PM
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."

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...