One of the particularly interesting charts is withholding taxes. As the economy slows down and the tax base shrinks, tax revenue slows;
Again, this gets back to the commonsense concept that if your tax base does not grow that your tax revenues, no matter how high the tax rate, will not grow. 100% of 0 is still 0.
This simple concept is seemingly lost on the democratic presidential contenders as their fiscal policy platforms both consist of increasing taxes and letting the Bush tax cuts expire.
We're about to go into a recession. The US is faced with its largest financial banking crisis since the Great Depression. Everybody's net worth is decreasing and the dollar is worthless. And to solve this problem Clinton/Obama are going to ...
raise taxes?
Yeah, that'll get the economy going.
So sad envy and class warfare blinds the masses as to what's truly in society's best interests.
Unfortunately, most of the people behind the Democratic candidates think that lowering taxes for the "rich" (those making $250,000 and more a year) has forced the middle class to pick up the slack, so to them, the Democratic idea makes sense, tax the rich more so that our economy can handle these current problems, and tax the middle class less.
ReplyDeleteThey don't realize they already are paying less, the "rich" are already paying more, and that the tax revenues have increased because the "rich" have been able to be more productive, because the "rich" pay 50% of the taxes.
For example, I know a business owner who was able to hire additional employees because of the Bush tax cuts.