pznbob
Lv 5
pznbob asked in Politics & GovernmentPolitics · 10 years ago

Why are students taught bad economics in Colleges & Don't understand raising income & corp tax reduces revenue?

Since raising taxes results in lower revenues because it kills incentive for economic activity? That would be pretty stupid wouldn't it?

Unfortunately Universities have been infiltrated by Globalist Money, and they have a goal of destroying our system so they can profit from our demise. Many so called experts are trained to be idiots, and can't even understand that an actuarial behavioral certainty proven by empirical evidence is actually a statistically backed fact. Raise taxes, reduced revenue. It's not simple math, but it is sound according to behavioral science standards. Just as elements don't always combine to make 2=2=4 people's behavior can be synergistic or degradational, depending on the elements that influence that behavior.

It is a fact that raising income tax and corporate tax decreases revenue. The reverse is also true about lowering them ... to a certain point that we are never likely to see.

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  • 10 years ago
    Favorite Answer

    Looks like you have it. It's the same reason you have to watch Glen Beck to get the history Progs have removed from our Children's Text books. They need to create an alternate reality and hide the truth about history so they can lie to us and get us to follow them down the path ... the path that Mao and Castro lead their people down. The path to the destruction of our rights and freedoms as individuals. So they can have ALL the Power and basically rule in Oligarchy as Gods over the little people who will have NOTHING.

    The destruction of knowledge and the stupification and created dependency of our people, is staggering.

    It's a crime. Actually by definition, it's treason.

    Source(s): SageandScholar OMG change your name. That Clinton raised taxes and created a higher revenue is a complete farce. Obviously you didn't hear about the bubble? That the economy was tanking before he left office? That his surplus was a dishonest projection based on a different (dishonest) way of calculating, that never came to be? THAT is what kids are being taught, and it's a total lie.
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  • Uh oh
    Lv 4
    10 years ago

    What you state is correct and people really need to look at a whole picture and not just numbers.

    When people claim that the Clinton Era raising taxes produced jobs and therefore revenue for the country, they do not take into account the fraudulent dot.com businesses after the internet boom and the fact that our whole economic system was becoming modified.

    Other eras stated are ones where ingenuity and a strong work ethic were in force both with the Unions and the Employers.The balance of 'power' has now tipped to become a country where the Union Bosses have the upper hand, which ultimately destroy entrepreneurship.

    In addition you now have the revenues of government used to keep people down (welfare, unemployment, medicaid) and laws that mandate them. Take into account the raiding of the pension funds due to regulation changes and the greed of the 80's generation who were taught by the very professors who claim big business is bad, you have a collapse eventually.

    It's the whole picture that the libs neglect to look at all the influences that effect our economy, such as the marxist agenda and big business bashing. The spread the wealth (even globally as you have pointed out) will bring America down and we will all suffer for it.

    Bottom line 2+2 will always equal 4 when all other factors are taken into consideration. I learned more by actually working for several businesses (profit and non-profit) than I would ever have learned in College.

    Bush's tax cuts did work and the recession was caused by the sub-prime mortgages being forced onto the banking system w/Barney Frank and Chris Dodd leading the way. If the tax cuts did not work, we would have been in a deeper recession after 9/11 and the economy would not have recovered as quickly as it had. Before the subprime fiasco, unemployment was under 5%. The tax cuts are still in effect and after the November elections, if not won by Republicans, will not become permanent, only then will the libs wake up to the fact that spending tax dollars only increases the government spending, not reduce the deficit. Check what Nancy Pelosi did with the interest earned from the banks who were forced to be "bailed" out with tarp. It was specifically deemed to be used to reduce the deficit, Pelosi helped modify it for those "revenues" to be used for the stimulus package. Wow, see how that worked.

    Source(s): Business Degree-Accounting major Took calculus for the fun of it in college.
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  • Susan
    Lv 4
    4 years ago

    No, they only look at the increased economic activity and imagine how much more in taxes could have been raised if the tax cuts had not taken place.

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  • 10 years ago

    It has nothing to do with what is taught in colleges and universities. Economics is both simple and complicated depending on how one views it. There is no such thing as a statistical fact. Statistics are by their very nature, odds or near queses. Lowering one tax generally requires the raising of another. The incentive to make more is not related to taxes other than those who pay a higher rate actually strive to make more, so they have more in the net. Universities have not been infiltrated. The entire world has become more globalized, and 2+2 always = 4.

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  • ?
    Lv 5
    10 years ago

    Its a classic maximization problem subject to constraints and boundary conditions.

    We used to solve these kinds of problems using partial differential equations in Economics classes all the time.

    Those constraints involve a lot of dynamics around a narrow range of tax rates that brings substitutions, price, and cost change behavior impacting tax revenues greatly. At tax rates above and below which larger forces dominate the tax revenue effects.

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  • 10 years ago

    If what you said is true, then why is it that we have always prospered better under higher tax rates when Democrats were in charge than when Republicans were in charge lower taxes? If lowering taxes always, 100% of the time, stimulates the economy, then why is it that Bush's tax cuts didn't just fail to stimulate the economy but actually resulted in one of the worst recessions this country has ever seen?

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  • 10 years ago

    This sounds like a conspiracy theory. Actually, students are trained to follow the opinions and are formally trained to follow the values of their professors if they want to complete their education, regardless of whether in practice what they are teaching it is legal.

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  • Anonymous
    10 years ago

    If you cut corporate tax by 50%, you are not stimulating growth by 50%. Period.

    Raising taxes does not result in lower revenues. Look at the Bush tax cuts, they did nothing to stimulate the economy, and he presided over 7 straight years of record breaking deficits.

    If you want to increase spending (ie. doubling the size of the government, starting 2 illegal wars, building secret prisons around the world to torture POWs in) you have to increase taxes.

    Before WW2, only about 10% of the population paid an income tax. During the war, almost every employed person was paying. That was during the largest growth the US ever saw.

    No, you can't raise corporate taxes to 90% and expect growth, but most major corporations will not significantly change the way they operate with a 2-3% increase.

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  • Anonymous
    10 years ago

    I submitted an argument to a gentleman on this site the other day. It was precisely on this issue. He was, or claimed to be an Economics major! I was astounded by his comments. I question, if Professors are teaching fact, or left-wing propaganda.

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  • Polly
    Lv 6
    10 years ago

    College is full of super left wing jobs who have never worked in the real world a day in their lives.

    Professors are about the dumbest people on the planet--just pontificating self inflated smug know it alls who have no life experience or training.

    College is the last place to learn about how finance, biz or free enterprise works.

    I went to an entrepreneurial seminar--and the guys running it--had never owned or operated or started a biz--they had never been outside of the ivory walls- I left after 30 min.--waste of time.

    Want to learn econ or biz finance--go to Trade school...not college.

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