Tax Cuts for the Rich II

Below parable aside, I had been considering what many left-learners had pointed out: that reducing taxes on dividend income and money earned through investment is a tax cut for the rich. I dismissed them initially because, of course, they neglected to mention that more people are in the 'no taxes' zone at the bottom of the income table than ever before, and that EVERYONE received a tax cut in their payroll taxes.

However, the argument is not without merit, and I erred by dismissing it. I have given it some thought.

There must be some incentive for investment. It doesn't matter who does the investing, and in fact, more middle class people are investing than ever before, which takes some of the punch out of the 'for the rich' line. Why must there be incentive?

Those rich people, those evil corporations - they are the employers of our country. If they lose money, their business does not get the capital it needs to grow. There are few statements more foolish than those which decry tax breaks to corporations. That's how they hire people, fool! If they have more profit at the end of the year, the capitalist system drives them to expand their business to make more money, which leads to more hiring.

I'm interested in other viewpoints. I invest, but I expect to draw under 50k this year (and maybe half of that next year - when I won't be investing!) I say that to point out that I am not protecting my own interests, but honestly think that this is an intellectual conclusion - that tax incentives are the best means of government spurring the economy.