Taxing the rich will benefit our economy

Kudos to my opponent for providing a well thought out debate! Just to clarify to the voters, my opponents "Introduction" which states what he is arguing is suitable and will be the topic of judgment. First Argument: Taxing the rich ($250,000+) reduces job creation and company expansion.The problem with the U.S economy is that our government has their hand in the free market which is causing a kink in the natural course of capitalism. Our high unemployment rates and lack of investments are caused by uncertainty. When you have an inconsistent government trying to pass laws that directly affect the profitability of the private sector, investors become fearful and sell their stock. This eventually causes a bear market, and the combination of a bear market and an unstable government further depreciates the market and ultimately causes a recession. Companies rely on investors for productivity and profitability. When investors remove themselves from the market, it causes the companies debt/income ratio to increase. In order stay profitable, they remove expenses, most commonly in the form of employment. My point in the paragraph above, is that capitalism is a top to bottom method for economic and social well being. Capitalism only involves the private sector, so they are not included nor should they be included in our economy's success or failure. Therefore, it starts at the top after supply is created to fulfill demand. Those are the people who create jobs and have the power to stimulate our economy.Increasing the tax rates for those who receive $250,000+ will do absolutely nothing to enhance our economic situation. It is proposed that by increasing their tax rates, it will provide the government with 1.1 trillion in additional income. With the additional money, as my opponent stated, Obama is planning on building and fixing infrastructure, as well as provide money for public employees and allowing for middle class tax cuts. The problem with this, is that the demand created by the increased taxes have no long term affects in economic stimulation. Building infrastructure creates a temporary demand. It will provide temporary work to an outsourced, private sector company solely for the purpose of providing temporary jobs. However, because we have limited funds and limited infrastructure, it will inevitably end. People don't invest in something with limited value, so nothing but government spending and temporary work will become of it. With regards to public employees, the demand has always been there. They would simply alleviate some of the hiring freezes that were put in to place after layoffs. Regardless, public sector jobs don't provide for investment opportunities, so the market will continue on its current track. As my opponent stated, the low and middle class spend more than the upper class. This is true, however, the middle class only account for 10.6% of U.S taxes. The government can't afford to lower them to the degree where the increased saving and spending would even scratch the surface of improving our economy. As everything stated above suggests, taxing the rich provides our government with money, but does absolutely nothing to stimulate our economy. At best, it provides temporary work for infrastructure and places public workers back in to jobs they shouldn't have lost in the first place. Now let's talk about the individual. Small business owners make up about half of U.S employees. There are a little under 6 million small businesses who employ roughly 160 million people. The average U.S salary is about $27,000. Roughly 1 million of those small businesses make $500,000 to $1 million. For simplicities sake, we'll use $500,000 as an average small business owners income. 39% of 500,000 is nearly 200,000. Let's say we reduce the tax rate to 30%. Now we're at $150,000. By reducing the tax rate we are saving a small business owner $50,000, which is potentially two salaries and two less unemployed. If we did that for every small business owner we would have 12 million new jobs created. Let's say the business was at full staff and couldn't hire anyone else. The average person who makes that kind of money already has an established emergency fund. An emergency fund is typically 3 to 6 months of savings for emergency events that arise. All additional money either gets spent or is invested. $50,000 x 6 million business owners is 300 billion dollars that is put back in to our economy. Even if they save, a savings account is technically an extremely liquid loan to the bank, who takes the money you just deposted, and invests it. So regardless of whether the additional money is in a savings account, or a brokerage account, it is still circulating the market.Bottom line, taxing the rich will not stimulate our economy. It will provide $1.1 trillion to be spent on temporary jobs and jobs that should have never been lost in the first place. It will not be put back in to the market nor will it provide an environment to entice people to invest in the market. Keeping taxes the same or even reducing them, however, will allow capitalism to run its natural course. It will provide for billions of dollars to be put back in to the market that everyone of us depend on. New investors allow companies to expand in every aspect of their business. Stimulated businesses create jobs. Jobs reduce unemployment and allow for investing. Investing drives interest rates up, and our government reaps the benefits from all angles. More taxes are paid because there are more employees. They make more money off of corporate taxes because of expansion. And, it allows the federal reserve to charge higher interests because more money is flowing through the market.Sources:http://www.csmonitor.com...http://www.census.gov...http://www.sba.gov...