You are simply disagreeing with 99% of economists.
Money in tax shelter doesn't go threw a portal in another universe. Its either invested or saved as some kind of asset and in that form is in circulation. And again, even if you assume it increases monetary demand (decreases velocity) the central bank targets AD and balances that out.
Based on your logic, a country that taxes 100% of all income and redistrubtes it would become infinity rich. Your logic is basically 'if nobody saves and everybody spends all income' everybody will be better off.
This is not how the economy works even if it feels good to think that. Its a fallacy.
Where you could have a point is that potentially the tax impact is slightly different, but that's hard to prove.
This feels like you intentionally gave this the least charitable reading. Obviously, I do not think that you could just scale to infinity. If I had said that eating a banana was healthier, I don't think it would be reasonable to say that assertion is ridiculous because that would mean eating 1,000 bananas would make someone the healthiest person. I was pointing out the difference in economic activity, where additional money to a wealthy individual mostly goes into savings/investing while additional money to low-income individuals mostly goes directly into consumption, and that the higher consumption generates more economic activity.
Money in tax shelter doesn't go threw a portal in another universe. Its either invested or saved as some kind of asset and in that form is in circulation. And again, even if you assume it increases monetary demand (decreases velocity) the central bank targets AD and balances that out.
Based on your logic, a country that taxes 100% of all income and redistrubtes it would become infinity rich. Your logic is basically 'if nobody saves and everybody spends all income' everybody will be better off.
This is not how the economy works even if it feels good to think that. Its a fallacy.
Where you could have a point is that potentially the tax impact is slightly different, but that's hard to prove.