We saw a showdown of sorts recently. Obama and the Democrats wanted the debt ceiling raised. The Republicans refused unless a cut in spending was part of the package. Then Obama pivoted to a "balanced" approach. That meant he wanted revenue, a euphemism for tax increase, in addition to spending cuts. Naturally the taxes come right away, the cuts some time in the future, if ever.
Do raising taxes really give the government the revenue it expects? Not really. Read this : http://townhall.com/columnists/walterewilliams/2011/04/13/eat_the_rich/page/full/ When government taxes profits, corporations report fewer profits and greater costs. When individuals face higher income taxes, they report less income, buy tax shelters and hide their money. It's not just rich people who try to avoid taxes, but all of us -- liberals, conservatives and libertarians.
What's the evidence? Federal tax collections have been between 15 and 20 percent of the nation's Gross Domestic Product every year since 1960. However, between 1960 and today, the top marginal tax rate has varied between 91 percent and 35 percent. That means whether taxes are high or low, people make adjustments in their economic behavior so as to keep the government tax take at 15 to 20 percent of the GDP. Differences in tax rates have a far greater impact on economic growth than federal revenues.
The logical conclusion from the above is...a better game plan is to cut taxes to stimulate growth, and cut spending. Dr. Kengor lays it out so even I can understand. It's the spending, stupid. : http://townhall.com/columnists/paulkengor/2011/08/24/its_the_spending,_stupid_a_crucial_historical_look_at_federal-government_spending/page/full/
Do raising taxes really give the government the revenue it expects? Not really. Read this : http://townhall.com/columnists/walterewilliams/2011/04/13/eat_the_rich/page/full/ When government taxes profits, corporations report fewer profits and greater costs. When individuals face higher income taxes, they report less income, buy tax shelters and hide their money. It's not just rich people who try to avoid taxes, but all of us -- liberals, conservatives and libertarians.
What's the evidence? Federal tax collections have been between 15 and 20 percent of the nation's Gross Domestic Product every year since 1960. However, between 1960 and today, the top marginal tax rate has varied between 91 percent and 35 percent. That means whether taxes are high or low, people make adjustments in their economic behavior so as to keep the government tax take at 15 to 20 percent of the GDP. Differences in tax rates have a far greater impact on economic growth than federal revenues.
The logical conclusion from the above is...a better game plan is to cut taxes to stimulate growth, and cut spending. Dr. Kengor lays it out so even I can understand. It's the spending, stupid. : http://townhall.com/columnists/paulkengor/2011/08/24/its_the_spending,_stupid_a_crucial_historical_look_at_federal-government_spending/page/full/
No comments:
Post a Comment