Thread: Spooky Obama
View Single Post

Re: Spooky Obama
Old 08-12-2011, 07:47 PM   #13
Professor S
Devourer of Worlds
 
Professor S's Avatar
 
Professor S is offline
Location: Mount Penn, PA
Now Playing: Team Fortress 2, all day everyday
Posts: 6,608
Default Re: Spooky Obama

Quote:
Originally Posted by thatmariolover View Post
1) Is a cool idea. But there's a tiny minority of people with a growing majority of the cash flowing through this country. If these people are going to continue to consolidate wealth at this rate, they need to put it back into the economy. They're not doing it by choice, they're not creating (nearly enough) jobs, and they need to be taxed a hell of a lot more than 25%.
TML, I understand your anger at the realities of this economy, but the facts simply don't support your argument.

1) Over 80% of the revenue lost from the Bush tax cuts came from the middle class, not the rich. Even if the rich pay a higher tax rate, there simply isn't enough of them to counter the sheer revenue generation power of the vast majority of those who make under $250K.

2) If you tax the rich (top 1%) at 100% they would only generate about $300 billion a year in revenue, and we'd still be over $1 trillion away from a balanced budget.

3) Regardless of tax rate, revenues have remained relatively stable as a percentage of GDP over the long term. The correct tax policy is the one that promote growth, not increase marginal rates. More money taxed = more money hidden from the economy. At best rich people are smarter than the IRS and put money in tax shelters. At worst they simply buy your favorite politician so tax laws don't affect them.

Taxing the rich at a higher rate sounds wonderful and full of righteous justice, and may make people feel better, but it does nothing except hurt growth and therefore tax revenue.

Quote:
2) Yes. And corporations shouldn't be "people". It's a joke.
Corporations do not pay taxes, people do. Taxes laid on corporations can be paid by three groups of people:

1) The investors through lowered profits/dividends/stock value, etc.

2) The employees through reduced pay, benefits, amenities, resources, etc.

3) Or the consumer through increased prices.

You get three chances to pick the right answer, and the first two don't count.

Since taxes on corporations are also laid on their competition, there is no competitive advantage to NOT passing it on. So you want to tax corporations at a high rate? Congratulations, you just gave yourself a hidden value added tax and lost jobs overseas.

Now that's if they pay taxes at all, which many don't, but in that case what is the point of raising taxes they don't pay? Answer: Social justice a great political tool even if it's lousy in practice.

Quote:
3) Obviously easier said than done.
Most things that are right are not easy.
__________________
  Reply With Quote