Quote:
Originally Posted by Undertoad
Lower tax rates should lead to higher tax revenues "at some point".
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That is the popular myth. The only thing that leads to higher revenue is balanced budgets. Lower tax rates - if that is supposed to increase economic activity - is to pass that law that requires everyone to replace their lawn every year. It causes massive economic health - in the short term. And worst economics destruction in the long term.
Any such money game that makes a better economy is also why economics takes revenge - without exception - many years later. Kennedy tax cuts were a perfect example.
Taxes must be the same percentage for all. Currently, the richest among us pay the least in taxes. The people who make most jobs - maybe in the $80,000 to $250,000 rage - see no tax cuts. The people who most feed off the wealth are paying the least under a myth of trickle down economics. That obvious myth back then is proven even by the worst recession in 70 years. When the greatest tax cuts literally destroyed a potential surplus, then look at all that wonderful economic health and wealth.
Spinning myths is easy among a population educated by soundbytes. Reagan told everyone he cut taxes. And then we look what he really did. By increasing social security taxes, he actually increased taxes. But those educated in sound bytes only believe the original myth. Because so many only believe the first thing they are told. And get angry when challenged with the truth.
George Jr's tax cut have only done massive harm to the American economy. But the lies and myths are rampant. For example, the tax rate on some rich and on corporations is 35%. What they forget to mention is what they are actually paying once all the spread sheet games and tax exemptions are added. Most major corporations are paying well less than 20%. A surprising number in the Fortune 500 were paying no taxes. Warren Buffet said his receptionist was paying higher taxes then he. But Limbaugh, Beck, etc did not discuss that. So an overwhelming majority did not hear it.
We have spread sheet games that only accountants and the people who created this mess could love. They even have us arguing nonsense here. When the rich only get richer - and this only happened twice in American history - then the country's economy goes crap. A wealthy and healthy America means job creators - which are not the rich people - are not being punished as they are today by MBA concepts of "the purpose of a company is its profits" - and other lies.
Taxes must be increased as necessary to cover the debts. As Buffet said, the only tax cut is one that reduces spending. Starting in 2000, the people who most destroyed America did the opposite.
Now they have all their victims fighting among themselves inspired by political rhetoric, myths, and soundbyte logic.
The most heavily taxed should be financial institutions that even lie about creating jobs. Wall Street does not create jobs - except their own.
Iacocca defined the problem in 1979. He could maximize Chrysler's profits by turning it into a financial firm. Those least productive companies earn the highest profits while paying some of the least taxes. Even most of GE's profits come from money games - not from producing anything. Which is why I tell every kid to never be an engineer. Always do what will most destroy America. Be an MBA. Harm America. But have the best income and easiest life. Screw America - because that is what the powers that be are doing to have everyone else fighting among themselves. And yes, I am being in your face serious. Don't be productive. The least productive people - ie my peers in school who were the worst students - are also the richest. They become stock brokers or some financial equivalent. They even get the best tax cuts.