, cbae wrote

I would probably put $100 more toward principal each month on my mortgage. Does that count as spending or saving or both? Regardless, the point is that if you divvy up the  money to millions of  low and middle class individuals rather than giving it all to ultra-wealthy individuals, you at least have some chance of having that money spent. Will 100% of the money be spent right away? Probably not. But to a multi-billionaire, there's zero chance he or she would spend any considerable portion of that money. Ever.

I count that as saving, since it's just paying down debt. Multi-billionaire's spend money all of the time. Big houses, lots of cars, travel, investments, etc. And I'm not advocating giving money to "ultra-wealthy". Obama wants to raise taxes on everyone making more than $250,000 a year. That would have a definite impact on small business.

And why would a business man feel compelled to expand his business unless the demand warranted it?

I'm assuming all businesses want to expand, but run into funding issues.

Whatever loopholes exist already exist, and they're being used regardless. Raising the tax rates doesn't automatically make more loopholes appear.

Yes, but there would be more incentive to find and exploit those loopholes.

 

The solution is to get rid of the loopholes and set the tax rate to the same amount for everyone. No one can claim unfairness, and "ultra-wealthy" can't shift their money around to avoid paying taxes.