| Lower taxes will not encourage consumer spending OpposingArgument1 #119129 If taxes are lowered on households that do not have that much money to begin with and who do not pay much in taxes, there will truly be no effect on consumer spending, because there will be no true increase in wealth |
Lower taxes will mostly benefit individuals with a significant amount of income. If individuals do not have much money to begin with, they will not experience any effect from not paying more taxes and will not contribute much to an increase in consumer spending.
"Even when tax cut proposals eliminate the taxes altogether for lower income individuals, some critics still maintain the cuts support the rich. This is true, in a sense, but if a tax cut generates broad-based increases in disposable income, it is likely that people who pay the most in tax dollars will save the most. In other words, those who do not pay taxes cannot benefit from a tax cut"
-Richard Cloutier
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