You may be getting tax cuts but its at the expense of future generations.
Well, I guess it's time for a lesson in Economics 101:
Taxes are a means of artificial inflation. A tax or tarriff unrationally raises the price on good and/or services, either directly (sales tax) or indirectly (income tax). A rise in taxes means a rise in costs for the producer, therfore causes inflation. Inflation causes the value of a dollar (or any currency) to devaluate. Devaluation means that the smae amount of money buys less, therefore prices have to be raised in order to make a prfit (a concept that liberals and socialists tend to not understand).
There is an anecdot to this proven fact, that is that if you cut taxes, the cost of goods and services decline, therefore the dollar increases in value. A person can buy more with the same size paycheck. If a person has more to spend, he/she will spend more. Since roughly 3/5th the US government income is in sales tax, that means a greater increase in sales tax revenue. A 2% decrease in income tax will break approximately even just in everyday sales. On big ticket items (cars, boats, durable goods) the amount of revenue collected will increase. It's the the Time Valueation of Money.
-Tim makes $500,000 a year.
-Time receves a 2% reduction in taxes, or $10,000
-Tim puts $10,000 in savings at 2% APR, pays 10% capital gains on his earnings
-The bank loans John $9,900 at 5% APR, pays 21% on it's earnings
-John spends $9,750 to purchase items for a home renevation at Home Depot (let's call it RONA for out northern friends), pays 8% sales tax
-Home Depot (RONA) pays 24% on it's earnings, but buys $9,000 worth of restock from Dewalt at 8% sales tax
-Dewalt pays 21% on the profit from $9,000, but has to purchase $8,000 worth of raw material at 8% from Alcoa
-Alcoa pays 20% on the income of the sale, plus pays the mining company $3,000 for aluminum ore.
-The mining company pays 21% income tax, in addition to taxes on the land the mine is on, taxes on the fuel purchased, taxes on any equipment it buys, etc.
This also doesn not take into consideration all the payroll taxes that the government will collect.
Total revenue generated by the US government on a $10,000 "investment":
$20
$104
$780
$702
$720
$567
$640
$480
$240
$189
$630
Stricktly in sales tax, the US government recovers nearly $5100. Add in all the income tax still collected, plus all the incidental taxes and the government recovers $10,000+. It's a subset of Trickle-Down Economics.
It's A PROVEN FACT that decreaseing taxes increase tax revenue. It happened in the 80's under Reagan, it's happening now under Bush. The US economy went to crap 2 years after Clinton raised taxes. Coincident? Nope. Tax raises usually cause the economy to decline approximate 2-5 years after the occurance. Tax decreases cause an upward trend in the economy in approximatly the same period. President Bush cut taxes in 2002. In 2005 we had the best economy in 8 years. Our unemplyment is currently lower than at ANY POINT under Clinton. The only reason we are not in a time of unprecidented economic expansion is due to oil and energy prices.
Again, facts are very hard to disprove.
Note to R Shek...One of my degrees is in economics and I used to teach econ part-time at a local college until I got the teachers' union mad at me. Go figure.
Congradulations! It's is my lifelong desire to piss a union off enough to boot me. My problem is now there is no way in hell I would join a Union.... oh well. So now, I do my best to piss off Caymen :wub: j/k dude... I like ya. You stick up for your principles.
