Here’s a thought to ponder. High taxes are an inducement to investment. Since investment itself offers tax advantages it is more profitable to invest than to pay taxes on idle funds.
And if the wealthy still refuse to invest than government can do so with the increased revenue.
Greater Asia: Wall Street’s factory.
Low taxes on the other hand can be a disincentive to invest because the risk at a low tax level demands a greater return on investment. If that return can’t be achieved the investment isn’t worth the risk
Taxes are as low as they have been in decades. And still there are no jobs.
Taxes were higher during the Clinton years and the economy boomed.
During and after the Second World War taxes reached levels of 91%. Yet during this period investment mushroomed and factories rose up across the American landscape.
During low tax periods very often the opposite occurred.
The Bush Administration is noted for it tax cuts to the wealthy. Yet what the Bush years have proven is that tax cuts do not create jobs – at least not here in America. Bush’s supply side policies were a fraud and should be abandoned once and for all.
Ask a friend or relative who believe tax cuts create jobs: “Where are all the jobs? Show me the jobs. We’ve had the lowest taxes in decades. Where are all the jobs? He may not answer the question. But he knows the answer.
It’s high time to raise taxes on the wealthy and use the revenue to stimulate the economy and create good paying government jobs. And government investment in areas that offer a vast potential for growth would revitalize a diminishing middle class.
I live in a red state. In my small community, the vast majority of residents are staunchly conservative. Voter turnout often yields results at the 70% level or more in favor of Republican candidates. Yet we are by no means a wealthy community.
In fact the county in which my little town resides has been battered for years by factory closings so that today there are only a handful remaining and they are small businesses with niche markets and very little growth potential.
Many residents have lost good paying factory jobs with fine benefit packages and now work at low level retailing jobs at minimum wage with no benefits.
The factories are gone never to return. They have relocated to low wage Asian countries and American corporations are now simply contracting with Asian factories to produce goods once made here in our county.
If you expect to find a job with an American corporation you might want to buy a plane ticket to Asia with your last unemployment check.
There is plenty of blame to go around for the dreadful conditions that exist in this small town and the thousands upon thousands of similar towns across the country – the towns that are the victims of industrial collapse. But the primary cause of the collapse lays at the doorstep of greedy Wall Street capitalists. These dinosaurs of the industrial world are the leaders of disloyal American companies who have abandoned the American worker for cheap wage slave labor in foreign countries. American workers certainly have a right to be bitter.
Because the jobs are never coming back. The rich have found greener pastures. They want even greater profits than they already extract from low wage countries and they will get them and they will get even more tax cuts than they have already torn from the fiber of this once great country.
But the words of bitterness expressed in conversation after conversation reveal the same tired old complaints as if they were implanted in minds through brainwashing. Taxes are too high. Tax cuts create jobs. If we would only cut taxes – just one more time for the rich – the jobs would return.
It’s the same tired old story but now it is sad, even pathetic. It reveals that the brainwashing is complete.
My view: Let’s try something different for a change. Let’s raise taxes on the wealthy.