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In reply to the discussion: Will President Obama really help the middle class this time (talking about the tax cut extension)? [View all]Johonny
(24,121 posts)Cutting taxes on wealthy starve government programs. The conservatives in government then cut wealth form programs and government jobs. Government jobs are a gateway to the middle class and all those programs that help he poor, well the poor use 100 $ of their money given to them. Money spent in our economy that does actually stimulate the economy that keeps middle class employed.
Cutting taxes on the wealthy also keeps the wealthy from reinvesting their money back into their business to avoid being taxed on it. It also gives them a strong incentive to give themselves huge bonuses now while the tax rate is good. Both things help to prevent middle class job growth and keeps wages flat.
Just about any "gain" the middle class has received from these small tax cuts has been lost due to unemployment, lack of salary increases, cuts in benefits etc... meanwhile the wealthy are getting more and more wealthy as the economy stagnates as a large percentage of the GDP goes to a small few that can't possibly spend it all. That hurts the middle class.
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