No. The rich create wealth and wealth creates more jobs. You don't use disincentives to create more of what you want you create more of what you don't want, which is less wealth and less jobs for everyone. It's totally counterproductive to overtax the rich. The rich are leaving and the country is getting poorer.
That's the theory, but it's flawed, massively.
If I have savings of £100 and put it into a savings account paying, say 4% interest. I earn an additional £4 year.
Skipping out all the in between scenarios. if I save £1,000,000 in the same account I earn £40,000 for doing nothing, and my money is only benefitting me. it isn't creating any wealth for anyone else. it isn't creating any jobs. It isn't making anyone else richer, except for the bankers, and the accountants.
And I'm getting even richer a heck of a lot faster than the poor sod with just £100.
Wealth creates wealth, and not a lot else.
Sure, I buy a car, and a house, and the groceries, but so does the poor sod with £100
And the rich person has a lot more left over to re-invest in a savings account.
Trickle-down economics, which suggests tax cuts and deregulation for the wealthy will lead to economic growth that benefits everyone, has been the subject of significant debate and scrutiny. While the theory posits that wealthy individuals and businesses will reinvest their gains, creating jobs and stimulating the economy, studies have generally found limited evidence to support this claim. Some research suggests that tax cuts for the wealthy primarily benefit the wealthy, with little to no impact on overall economic growth or job creation.
Some studies show that decades of trickle-down policies in the US have redistributed wealth from the bottom 90% of earners to the top 1%.
