1. ….you can also boost demand by raising taxes on the rich and cutting taxes on the poor and middle class, for the simple reason that the poor and middle class tend to spend all or most of their income while the rich do not.
2. That's why it makes sense, from an economic perspective, to finance payroll tax cuts with a tax hike on millionaires.
Out of which economic book?
It is MY theory based on the price and availability of domestic products. Those on low incomes are typically trying to stretch their money hence favoring lower priced import products (cheap crap). Typically only moderate and high income persons can afford higher price and better quality domestic products (Cadillac’s vs. Chevys).