Tuesday, September 14, 2010

Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

Hand the wealthiest Americans a tax cut and history suggests they will save the money rather than spend it.

Tax cuts in 2001 and 2003 under President George W. Bush were followed by increases in the saving rate among the rich, according to data from Moody’s Analytics Inc. When taxes were raised under Bill Clinton, the saving rate fell.

The findings may weaken arguments by Republicans and some Democrats in Congress who say allowing the Bush-era tax cuts for the wealthiest Americans to lapse will prompt them to reduce their spending, harming the economy. President Barack Obama wants to extend the cuts for individuals earning less than $200,000 and couples earning less than $250,000 while ending them for those who earn more.

Reblog this from every mountain top.

Republican tax cuts for the rich, AKA the failed Bush cuts, only help the rich, they only increase income disparity. They do not effect the economy!

Business cycles effect spending. The economy needs more spending by the middle and working classes. Not more savings by the wealthiest.

Wake up blue collar America, you're getting hosed by the Republican agenda. Live a conservative lifestyle if you want, we all do, but the economy can't handle anymore Republicans leadership riding this country into the ground.

Posted via email from liberalsarecool.com

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