Reply #4: What happens to the money the millionaire "socks away"?

[HamdenRice]

On balance I agree with you, when it comes to tax policies that put money in the hands of consumers. But there are reasons to promote savings as well.

What your scenario does not take into account is what happens to the money the millionaire "socks away." If he puts it in the bank, the money may be lent to regular people to purchase and renovate a home, which involves buying lumber and dry wall from Home Depot and hiring contractors. Or the millionaire may purchase stock in a small company with a promising new technology, that enables it to hire young scientists and lab technicians, who in turn buy hamburgers for lunch every day.

It's not as unbalanced as your scenario makes it out to be.