If you distribute a million dollars across the entire US economy, that's roughly 30 cents per person, and it's likely to be spent on some chewing gum or a very small amount of food. It dissipates before it has a chance to grow. If concentrated, the million dollars can be applied to things that are only possible when money is concentrated, like doing research and development, investing in large construction projects, etc. Instead of spending the money directly on basic resource acquisition, when concentrated, it can amplify resource production, which lowers prices and provides a greater benefit to the average Joe than having another 30 cents in his wallet.
Money doesn't "dissipate" because it's spent. Money changing hands is what fuels the economy.
There's also no reason to assume that tax money goes from wealthy pockets to poor ones directly. The government can build infrastructure (which they do a lot more of than private industry), fund R&D, etc. Individuals could also invest their money into funds that fuel R&D, fund startups, etc. It's incorrect to claim that only the wealthy invest.
"There's also no reason to assume that tax money goes from wealthy pockets to poor ones directly. The government can build infrastructure (which they do a lot more of than private industry), fund R&D, etc. Individuals could also invest their money into funds that fuel R&D, fund startups, etc. It's incorrect to claim that only the wealthy invest."
And there are some project that only the government can take on due to how long cost recoup would be or the risk levels (Space, Internet...) but those things fund high paying jobs.
You make the assumption that tax money goes into the population's pockets instead of government-funded projects.
Your argument is easily reversible to raise taxes across the board in order to concentrate the money into government projects rather than having it spread around.
