Do you believe lower taxes create more government revenue...and job growth?
Well, I do and all I do is look at........history.
Let's walk it through for the libs who disagree and think tax cuts are "only for the rich". Wrong. Reagan and Bush cut taxes across the board.
So if companies (large or small) and individuals are taxed less...what happens? Right, they expand their business, hire more people, spend more, invest more. That in turn creates more jobs from hiring more people to sell goods and services, to hiring more people to manage investments...on and on. Then people, even with moderate incomes hire more people...to do their laundry, baby sit their kids, clean their pools, clean their homes, mow their lawns, on and on.
This is why capitalism is the best system, so far known, that benefits the individual and society the most. It's in-discriminatory as well, unlike the government is when determining voting districts, programs and benefits. The person selling produce in the grocery store doesn't know the color, race or religion of the person who is growing the crop.
So what do higher taxes do? The opposite. Businesses (large or small) hold back. They expand less, hire less people, or cut back hours or lay people off. People buy less, they invest less and they hold back on hiring help for services (ie. landscape, house cleaning) and do it themselves.
Why is there this stigma from the left that "tax cuts are only for the rich"...when history proves it's anything but the case?
- Anonymous1 decade agoFavorite Answer
Surely there is an optimum tax rate to maximize government revenue. This rate can not be zero because then there would be no revenue and it can not be 100% because then there would be no economic activity.
The blanket statement that cutting taxes will increase government revenue is false. If you are at a tax rate that is higher than optimum and you cut taxes then you will see an increase in revenue. If you are at a tax rate that is below the optimum and you cut taxes you will see a decline in revenue.
the stigma that tax cuts are only for the rich is there because it is true any time you lower the rate of the top bracket. the rich pay the vast majority of taxes per person so any tax cuts tend to leave them with the biggest savings.
- Wayne ZLv 71 decade ago
Wow! You mean a conservative organization thinks that conservatives are right? What a news flash.
Notice how they didn't mention the Bush tax cuts from the 2000s. The truth is that the Bush taxes cuts never paid for themselves.
Here is another piece of info: The theory that tax cuts create jobs is a political theory; not an economic one. No business in the US has ever hired a single person just because their taxes were lowered. Likewise, no business in the US has ever fired a single person solely because their taxes were raised.
And remember......Intelligence also has a Liberal Bias.
- Anonymous1 decade ago
Because the uneducated believe whatever the spin doctors in DC tell them and do not try to research and learn for themselves. Have you noticed that the only people who hate the wealthy are then ones who want everything given to them and do not want to work for it? The thieves in DC know this and perpetuate this stupidity to continue to line their pockets when their wealth all comes from taxpayers.
- StephenWeinsteinLv 71 decade ago
That only happens when taxes on the poor (which are already at zero) are cut. When taxes on the rich (which are all that is left) are cut, they continue spending the same amount and save more, but do not spend more.