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542354234235 15 hours ago

Take a million dollars, give 1,000 poor people $1,000 and every dollar will be spent on goods and services. The companies running those services and making those goods will need to have their employees work more hours, putting more money back in poor people’s pockets in addition to the money the companies make. Those employees have a few extra dollars to spend on goods and services, etc.

Give a rich person a million dollars, and they will put it in an offshore tax shelter. That’s not exactly driving economic activity.

panick21_ 14 hours ago | parent [-]

You are simply disagreeing with 99% of economists.

Money in tax shelter doesn't go threw a portal in another universe. Its either invested or saved as some kind of asset and in that form is in circulation. And again, even if you assume it increases monetary demand (decreases velocity) the central bank targets AD and balances that out.

Based on your logic, a country that taxes 100% of all income and redistrubtes it would become infinity rich. Your logic is basically 'if nobody saves and everybody spends all income' everybody will be better off.

This is not how the economy works even if it feels good to think that. Its a fallacy.

Where you could have a point is that potentially the tax impact is slightly different, but that's hard to prove.