Obama Tells Progressives He Won't Budge On Bush Tax Cuts

What higher taxes on the top earners does is move money out of risky speculation and into investment in the real economy. The benefit of Tax Increases on the rich comes from modifying their behavior in terms of money management, not in the revenue from the taxation. It is better for the economy for the wealthy to get financial benefit from investing in the real economy, thus expanding opportunity throughout the economy, rather than have that cash just churning in a hermetically sealed investment environment that provides little value to the American economy and creates tremendous risk for economic collapse.



The higher the taxes on the wealthy the more they are compelled to invest in ventures that expand opportunity for all Americans, and the less attractive it is for them to hoard their idle wealth in investment houses.



An even more beneficial additional taxation would be to declare capital gains as straight income and tax it as such ... that would really invigorate the treasury's coffers and drive down the debt.
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