Quote:
Originally posted by motion
So, what becomes of that 40% that is "wasted" in the government? Is that money stuffed under matresses never to be seen again? I'm pretty sure it makes its way back into the economy. Prolly no different than if Tiger had kept it and spent it.
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By "wasted" money, I usually think of money spent when no valuable product or service is provided. For example; if the tax code were simplified, thousands of accountants would be put out of work. Many of them would then find work providing products or services to the marketplace. Sure, giving a government worker a paycheck to process paperwork stimulates his personal economy, but gives the taxpayer little value. If more of our tax dollars found their way to actual goods and services (road building, SSI, Medicare) we would all benefit.