really ? then post any prof you have that this article is untrue ! On Nov 17, 6:26 am, mark <[EMAIL PROTECTED]> wrote: > 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- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum
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