DarthKyrie
Golden Member
- Jul 11, 2016
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If you tax the rich in a way that encourages them to reinvest in their companies, it has two effects
a) they actually reinvest in their companies (if they own any), generally through improvements to whatever it is they do, and wages
or b) they get the shit taxed out of them, and that money goes to the govt, as you said.
If they increase wages, that goes directly to middle/lower class worker bee's.
If they get taxed, that money can be routed to social programs which improve everyone's lives. It can also provide income for things such as a universal single-payer health system, which will alleviate some costs on the lower pay scale individuals, as well as increase incomes across the board.
You forgot the added benefit that employers enjoy, they no longer have to provide health insurance to their employees thus freeing up those funds to go into wages or into the business.
