What do rich people do with their money? Two things. They invest it or spend it. Putting large amounts of money into a bank account at low interest rates is not a good strategy. That's why the rich are motivated to invest in the stock market, in real estate, in small business and entrepreneurial pursuits. When they buy a new boat, some salesman's wife rejoices when her husband gets a commission, some factory worker gets hired to build another boat; a truck driver is hired to deliver the boat; a gas station owner sells gasoline and oil for the boat; some restaurant by the lake gets a new customer. When they invest in real estate, a realtor gets a commission; a construction worker get hired to build or renovate a building. When they invest in small business, new people are hired to run the business; the business purchases supplies from other businesses, who in turn hire people to handle the increase in business.
So if we tax the rich, what is the net effect? What happens to all of these jobs?
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