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To: drzz
Tax cuts are not about rewarding the rich. They are about incentives. In that sense Joe the Plumber showed that he understands economics. As Paul Krugman, a liberal economist who sometimes thinks straight pointed out, if the goal is to encourage the behaviors that make people become rich, then it is hard not to give a tax cut to people who are already are rich.

Most rich liberals don't care about their paycheck. That's fine. I, however, care about the entrepreneur who is conducting a cost-benefit analysis on starting a new business.

4 posted on 11/10/2008 12:35:48 PM PST by Jibaholic ("Those people who are not ruled by God will be ruled by tyrants." --William Penn)
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To: Jibaholic
I, however, care about the entrepreneur who is conducting a cost-benefit analysis on starting a new business.

And the facts of life of starting a business is that in the initial years you work long hours with low income, which is made up for by higher income in the later years. But if the income in the later years is taxed heavily, you might as well be an employee of an existing company.

Looking at what I just wrote above, you might see the reason why some affluent people support Obama: they might pay more in taxes (or not, depending on how good their accountant is), but by killing new business startups Obama ensures that they will have less competition to worry about, and thus higher incomes to compensate for the higher taxes.

20 posted on 11/10/2008 12:48:08 PM PST by PapaBear3625 (Question O-thority)
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