@Rieonars "But wouldn’t raising taxes reduce spending /...

@Rieonars

"But wouldn’t raising taxes reduce spending / consumption ?"

Cutting taxes in the US was supposed to increase spending/consumption, but rich Americans (the principal beneficiaries of the tax cuts) spend a much smaller portion of their income than average Americans (who spend almost all their income) so the benefits of the tax cuts to the broad economy were marginal. (Have you noticed how Republican congressmen have stopped talking about this subject?)

I expect that if the Trump tax cuts were reversed tomorrow the impact on spending and broad economic activity would be similarly "marginal".


Afterthought: The assumption that high taxes suppress spending is questionable. The last US president to increase taxes was Bill Clinton and he presided over a boom.

Second afterthought: What has all this got to do with the price of gold? That's right. @bobby was having trouble putting very large numbers into context...