Quote Originally Posted by The Redneck
Actually, a luxury tax affects exactly that "handed from one rich person to another" theory you were espousing. And as I noted, it obviously does help the "little guys" because when that 'extra money' was reduced, thousands of people ended up without jobs. Moreover.
But I'm saying that the only reason they can spend this extra money is because they were granted a tax cut. A luxury tax is a consumption based tax, and we are discussing an income based tax.

Actually, "the poor" pay 0 in taxes already, along with a significant chunk of the middle class.
Well, "the poor" don't pay income tax because they hardly have income and what little they have is usually below exemption levels or the EITC, but I assure you they pay plenty of other taxes.

Clearly we just have a fundamental disagreement about the role of government in society. Neither view is technically right or wrong, but the two approaches lead to drastically different societies.