A letter to the editor in The Record recently made the following claim about tax cuts for wealthy individuals. He said the rich will spend some of that money-which it seems is what we want people to do-but most of the tax break will be put into "safe federal, state and municipal bonds". These bonds will pay interest in later years, interest provided by all taxpayers, and in most cases the interest paid will be tax-free. Thus the rich will preserve their tax cut gains and in the long run create more wealth in the form of interest. As he says "no wonder the wealthy grow richer while average taxpayers get poorer". I don't know enough to know if he is right or not, but it is an interesting thought.
(Source: The Record "letters to the editor" on 9/28/10)
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