Cut taxes on the rich, so the argument goes, and this money will be reinvested at home. For those of you who have read Patriot Acts, we’ve been over this numerous times, but let me restate an empirical fact: Tax cuts for the wealthy do not increase overall revenues or spur domestic business investment and job growth.
A new longitudinal study compiles data from the last 65-years to find why tax cuts in and of themselves have never led to economic growth. In the past, the rich may have reinvested about a third of their tax savings in the US, but now, most of it goes into savings, personal spending, or overseas investments.
From The Huffington Post