what a load of shit. On Nov 17, 6:17 am, "mike [move on] 532" <[EMAIL PROTECTED]> wrote: > Why the Economy Grows Like Crazy Amid High > Taxeshttp://www.alternet.org/workplace/106979/ > The raw truth is that the economy has grown faster when taxes were > higher, but how can we explain that phenomenon? The real- > world effects of tax policy are counterintuitive. > > They run exactly opposite the conventional wisdom. They defy what the > Heritage Foundation calls common sense and what the American > Enterprise Institute calls logic. > > Reality laughs at the Laffer curve, calls Ronald Reagan wrong and > says > George W. Bush is a loon. > > High marginal tax rates correlate with economic growth. > > Examples include World War II and the Truman-Eisenhower years, when > it > was around 90 percent, and the Clinton years, when it was high > relative to the preceding and following administrations. > > Tax rate increases are followed by real economic growth. > > Examples include Hoover in 1932, Roosevelt in 1936 and 1940, Bush the > Elder in 1991 and Clinton in1993. > > Moderate tax cuts are followed by a flat economy. > > This is a generalization from one example: Johnson in 1964. > > Large tax cuts are followed by a boom, a bubble and a crash. > > 1929, 1987 and 2008 are examples. > > These are covered in more detail in the first part of the article > "Tax > Cuts: The B.S. and the Facts." > > Why do high taxes create a stronger economy? > > I used to run a small business -- a commercial film production > company. > > Every time we took a dollar out as personal income, it instantly > turned into 50 cents. > > If we didn't really need the money, that was an incentive to keep it > in the company and to find ways to spend it that took it out of the > taxable profit column but increased the value of the company. > > High taxes create an incentive to reinvest profits into long-term > growth. > > With high taxes, the only way to retain the bulk of the wealth > created > by a business is by reinvesting it in the business -- in plants, > equipment, staff, research and development, new products and all the > rest. > > The higher taxes are (and from 1940 to 1964 the top rates were around > 90 percent), the more this is true. > > This creates a bias toward long-term planning. > > If a business is planning for the long term, it wants a happy, stable > work force. It becomes worthwhile to pay good wages and offer decent > benefits. > > Low taxes create an incentive for profit taking. > > It is easy to confuse profitability with wealth creation. > > They are not the same --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum
* Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
