Originally posted by Eurisko2012
reply to post by xuenchen
Their strategy is to bring over the coveted Value Added Tax from Europe.
Tax the rich won't work and they know it.
They need to tax everyone. I hope this comes up during the debates.
OF COURSE they need to raise taxes overall
Just looking at the deficit even a moron can see that just by cutting spending you can't fix this deficit. There's only 2 ways you can fix it:
a) Cut spending and have economic growth like we had during Clinton:
That's simply not going to happen, the and the issue here isn't that companies are paying too many taxes. They are now paying LESS than during
Clinton, so clearly that's not the driver of economic growth.
We are in an economic crisis because reckless deregulation allowed the banks to screw us all over. They then got the government to allow them to
privatise all gains while putting all losses on the backs of the public. And when I say the "government", I really mean "the banks". Because if
you actually bother looking up the CVs of the people who allowed for all this to happen, you realise that they are essentially banker sock puppets.
explains it really well.
Anyway, with even China's growth slowing down, it's pretty clear that the whole "economic growth" thing won't fix the deficit.
b) Cut spending and raise taxes:
Realistically, this is the only way. Yes it sucks, yes I wish there was another option, but sadly this is the only way. Now you can raise taxes in
several ways. The goal should be to raise taxes that don't harm economic growth, and to ensure the population as a whole doesn't starve or die off.
So one thing they could do is to raise taxes for companies and bring them back to Clinton area levels. We're not talking about them paying 10% more
here, just a few %. That would bring in A TON of money without harming economic growth...because as I said, we had massive growth during Clinton's
"higher taxes" years.
They could also raise taxes for people that wouldn't really "feel the sting". People who don't have to worry about not being able to properly feed
their kids if they had to pay 2% higher taxes...or even 5% higher taxes. And no, paying 5% higher taxes wouldn't deter those people form starting new
companies or otherwise creating jobs. If you have a business idea and the business plan shows you will make healthy profits, a tax that's 5% higher
won't deter you. If your margin of profit is so low that 5% bothers you, then your idea is RUBBISH in the first place.
They shouldn't raise taxes for those people who would otherwise SPEND their money. A poor person will spend 100% of his income shopping or otherwise
stimulating the economy, no matter his taxes. A middle class person will spend most of it, and will save just a bit. Again, most of it goes directly
into the economy. If you're rich, you mostly spend a fraction of your income...most of it is invested, because that's what ends up making the real
$$$. So you end up investing in something that makes you a good return...like I did when I invested in gold at the start of the crisis. Guess how many
jobs that created
So economically, raising taxes of the richer people makes a lot more sense. Ethically it's of course a no brainer.
So yeah...you can't just look at stuff as black or white, you have to consider the big picture.