tax cuts
reagonomics is the idea that you can cut taxes for the rich and the economy will boom and everyone will make so much money they'll end up paying more total taxes. it relies on two assumptions. one, rich folks drive the economy. and two, rich folks want an infinite amount of money. the last one is hooey. you don't spend all your time working. you save some time for family and fun. right? rich folks are the same way. it's just the scale that's different. and what they do for fun. suppose i prefer the kind of lifestyle that consumes $10M per year. if the tax rate is 50% i work my ass off and make $20M. then i take the rest of the year off and enjoy my loot. and the government gets $10M. assuming my business has a 10% profit margin, the economy gets $200M worth of business. presumably for jobs, goods and raw materials. now suppose the tax rate is 20%. in order to take home the same $10M for my lifestyle i only have to contribute $125M to the economy. and the government only gets $2.5M. so if you want to boost the economy and raise revenues for the government, you raise progressive taxes on the rich. you don't cut em. cutting them only benefits the rich guy. cause he gets to spend more time on family and fun. meanwhile you, the guy who feeds the rich guy, is standing in the unemployment line.