Quote:
Originally Posted by Tiny
Come on Gaston. I guess you can take the boy out of Chicago, but it's hard to squeeze that last little bit of socialist populism out of him after he moves to God's Country (Texas).
Here's what happens when you cut tax rates on corporations and the wealthy,
1. More money stays in the private sector, where it's invested in growing businesses and the economy, instead of being flushed down the drain by government.
2. More jobs are created in the private sector. You have more employment and higher wages.
3. Prices the consumer pays for products produced by businesses go down (the reverse of passing the cost of higher taxes onto the customers, in your post).
4. The corporations and the individuals stay in America and invest in America, instead of moving their capital and their domiciles to where they can get better after-tax returns.
5. OK, how about the argument that if the corporations make more money (because of lower taxes), they'll pay higher dividends and buy back stock, instead of investing in growth. Well, so what? The shareholders will invest the money they get from dividends and buybacks elsewhere. That's what keeps the American economy efficient. Mature companies without good growth prospects pay a higher % of their income in dividends, and shareholders presumably reinvest that in companies and businesses that are expanding.
6. And then there's the argument that the companies and individuals will just sit on the cash. Again, so what? The money ends up in banks, who make loans to American businesses and individuals who put the money to good use.
|
7. money stays in america instead of going overseas. some go to overseas tax shelters, others go to invest in companies in foreign countries the tax rate is lower.
