the fallacy is pretty simple. If you allow wealthy people and business owners to 'keep their own money' through low marginal tax rates, wealthy people tend to keep their own money and not necessarily re-invest it.

while trying to dodge taxes.

especially when they are rewarded with lower taxes on those risky investments.

Fact, and I think you know this, some of our best years in terms of economic growth were when marginal tax rates were at their highest. Talking 1950-60's here. Not saying go back to 90% rates at the top, but should be more than 50% for everything over, say, $5-10 mill.

Small businesses usually do reinvest in their business. The larger mega-corps are sitting on an estimated $3 trillion in cash right now. Businesses can take advantage of reinvesting, and the resulting tax benefits, but they are simply not doing it.

never hear it on CNBC for sure.
When top marginal tax rates were 91%, *of course* the ownership class would re-invest that money in their business instead of just paying it to the government.

Here's an article about it:
http://www.alternet.org/story/106979/why_the_economy_grows_like_crazy_amid_high_taxes

even talks about externalities like infrastructure and the fact that taxes go right back into the economy.

Why are people fooled by all of this nonsense about giving the rich even more money? It's demonstrably a bad strategy.

I just paid for thousands of dollars worth of personal items and am going to make it a company expense. We'll call it "office supplies," that should work. Now, I can increase my assets while keeping my taxes low.

Thanks!