Linked by Thom Holwerda on Tue 26th Apr 2011 22:06 UTC
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Member since:
2006-01-19
There ALWAYS is someone left who is solvent. It might be even one person only. And the economy is only in trouble if this person who is solvent does not buy enough goods.
Which leads us directly into the reason, why taxing the "richness" of people is good for the economy:
If no tax is put on money you are just sitting on, you are not encouraged to buy things.
But if taxes on your money (not your income!) are high, you will say: OK, I buy me a new $WHATEVER before taxes are eating up all I have. And that is good for the economy.