tag:blogger.com,1999:blog-8529580665294663953.post6522030130734582255..comments2023-10-27T04:26:57.609-07:00Comments on InvestorCentric: Taxes And Economic GrowthNuWire Investorhttp://www.blogger.com/profile/02512928198926080436noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8529580665294663953.post-40786298850627519952009-11-05T08:26:04.899-08:002009-11-05T08:26:04.899-08:00I'd argue that stability is a key factor in ec...I'd argue that stability is a key factor in economic growth and balanced budgets enhance the perception of stability.<br /><br />I'd also say that tax hikes, like tax cuts, invariably hit the upper classes the most. As such, tax hikes have a somewhat redistributionist effect being that the burden of government is born by the wealthy to an even greater degree. The lower classes, who have a greater propensity to consume larger portions of their income are receiving somewhat of a break. Government spending remains (high), providing additional good jobs and the end result is somewhat increased lower and middle class demand for goods/services resulting in economic growth.<br /><br />The interesting thing is that the wealthy still benefit overall, having a large share of their wealth tied to investments which are doing well in the growing economy.Bradnoreply@blogger.com