Posted on 03/03/2009 8:17:16 AM PST by usflagwaver
Politicians and governments seem to want more tax revenue almost at every turn. In response to rising deficits, the Media and the Democrats reflexively demand tax increases.
In practice, politicians increase tax “rates,” i.e. income rates, sales tax rates and the like in pursuit of more tax revenue. Tax rate increases, however, yield less revenue over time than tax rate cuts. For instance, when the economy was bad in the early 1990’s, California raised tax rates and over a 3 year period, revenues actually dropped. By 1999, Bill Clinton’s tax rate increase resulted in the highest tax burden in our history - a recession naturally followed which led to declining revenues. This article is your common sense guide as to why rate cuts work better than rate increases.
Common Sense Point #1. The more money or assets you ACTUALLY have, the more you are likely to spend or invest. Think about it. Once you have enough for your basic needs, the more discretionary income you have, the more you will buy, including slightly higher priced shoes, cars and homes. That’s why the affluent spend more than others.
Common Sense Point #2. Conversely, the less money or assets you ACTUALLY have, the less you are likely to spend or invest.
Common Sense Point #3. The more money you THINK you are going to have, the more you are likely to spend or invest. This may be obvious, but it is a very important point. Even if someone does not have a lot of money, if that person gets a new job with a higher salary, the average person will be more willing to spend money or buy on credit, i.e. a new car loan or a loan for a bigger home.
(Excerpt) Read more at politicalvanguard.com ...
Main point:
Tax increase leads to MORE government corruption which leads to bigger government, which leads to more corruption![See New jersey for more details]
Everyone lives happily ever after....unless your an honest taxpaying citizen working in the private sector!
Dead weight loss.
During the campaign O admited that increasing taxes lers Fed revenues. It was during an interview with Matt Lower I believe.
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