Quote:
Originally Posted by Robbie
I guess what I'm saying is if reducing taxes HELPS the economy when you lower it from a too high rate to a lower rate and for the obvious reasons JFK stated...
Then why would raising taxes HELP the economy?
I was watching some guys on a business show the other day and one guy laid it out like this:
Corporations and businesses NEVER pay more taxes. They simply pass it on to the consumer and/or make cuts in employees. The name of the game is to keep a profit level.
So if that is true, wouldn't it stand to reason that giving Washington D.C. even more money is gonna have a bad effect on the economy?
And if not, could you please explain to me what the theory is that is going to encourage business growth and by extension employment if the govt. takes more money from them and leaves them with LESS.
I don't quite understand how that will work.
And if it does work to somehow have people keep less of their own money. Then why doesn't Washington try the same "great" concept and stop spending so much? If it won't hurt business to have less money, then it shouldn't hurt good ol' Uncle Sam to have less either. Right?
|
It helps simply because it forces money to move around. Our entire economy, stock market, banks, money system, heck even companies are all based on money flow. The problem with a recession, stock crash, bank crash, etc is the money stops flowing, people in fear stop spending or have no money to spend and people hoard the money which all stops the money from flowing. Taxes... reverse that.
The tax cut that happened though, they said "that tax cut" would force money to flow, that the wealthy would spend more. But that's not what happened because they have no reason to spend it.
If you're earning $250k a year personally and removing this tax cut bothers you, then I understand... it is your money. However, you should be spending that extra money, every dime of it - if you want to help the economy. While you probably would, it appears most didn't.