Question regarding tax cuts for 'the rich' and job growth.
As I understand the argument, cutting income taxes on the wealthy helps them generate jobs. Exactly how does this work?
I thought job growth was one reason why capital gains taxes are already substantially lower than income taxes. I thought that was done to encourage individuals to invest in companies; investment provides the funding to expand or improve; expansion increases jobs.
How does cutting income tax on individuals encourage job growth? How do we know the tax savings will be spent on something that encourages job growth? Wouldn't it make more sense to cut the income taxes on businesses, not individuals?