I absolutely hate tax season! It truly disgust me to think of all the garbage Washington D.C. and states spend money on (both parties). Furthermore, I hate the Robin hood approach that liberals take when they speak of taxing the rich more. The thing I have always wondered is are they so ignorant that they do not know the wealthy create most of the jobs in the United States. Furthermore, if they hate the rich so much, then why did they all (Republicans & Democrats) vote for things like NAFTA and CAFTA sending all our production jobs overseas. This allows the rich to get richer if anything does!
I almost feel sorry for some of the newly elected..........
11 comments:
Even if the rich do create most jobs, that doesn't necessarily mean taxing them would create fewer jobs. Economics differentiates between "income effects" and "substitution effects" of a change in income (such as from increased taxes). If you reduce a person's compensation on an hourly basis, he has less incentive to work longer hours (substitution effect). But at the same time most people have a "target" income they desire to earn in order to finance a "target" lifestyle ; so anything which reduces overall income might also cause them to work more (income effect). The two effects make any change in income (whether due to taxes, price changes, etc.) ambiguous. The balance of the two effects cannot be decided a priori. Therefore, it is not ignorant to suppose that taxing the rich would not harm job creation. It might, or it might not. It depends.
Is it Joe the Plumber season again?
Adam Smith plainly explains the reason for progressive taxation: the rich benefit most from the existence of government. The detrimental 'free trade' laws you cite are a fine example of the rich making government work for their benefit. Heavier taxation is a price one pays for preferential treatment.
Nobody of any means is going to a tax table for anything resembling their actual gross income. The high tax rates claimed are fantasy based on multimillionaires without accountants or deductions. Does not happen.
Anonymous,
Nice cut and paste work from your Econ 101 text. However, a salaried employee who does not earn overtime will only have his/her income reduced by increased taxes. Hourly employees may have an incentive to work more hours to offset income lost from higher taxes, but their employer might cut hours or eliminate overtime, effectively closing off any means of offsetting income lost to higher taxes. Getting a second job is always a possibility, but the grim economic environment makes that difficult. However, either scenario brings us to the same conclusion: Americans must work harder and longer for the same or less income and at the same time finance governmental redistrubution of wealth policies. Step out of the classroom, my boy, and come into the real world. Liberal tax and spend policies simply do not work.
Adam Smith argued that open market economies are best for society. The central theme of his book(s) is that the owners of resources use them more profitably and that results in an equal rate of return for all users.
Anyone who can spend so much on clothing can afford a bit more in taxes. How many ties and pairs of slippers does one man need?
Eponym and Robb both make very good points, and it's not as if 'supply side' policies, in themselves, will save the day. Right now, with companies rebounding but not hiring, it's not quite as simple as our Richard seems to be implying. IMHO, the entire tax code needs to be revised, but that's another discussion. For now, Richard: Write the check, send in the return and stop belly-aching!
Richard:
It is obvious your proclivity toward second hand thought and opinion is unchanged and yet somehow it is reassuring that certain persons, despite their desire or even the capacity to burn through some credit at a ralph lifshitz outlet, store being hardly appropriate, will always be transparent and effortlessly unaware it. Your powers of self deception and denial are unequaled in the style/wasp/blog genre.
It always interests me that Australia embodies many of the policies that terrify Americans (public health care, taxing the wealthy etc) yet we are one of few countries which did not have a recession around the GFC and our unemployment rate is 4-5 times lower than that in America.
Just thought you'd like to know you lost a subscriber over this post. NOT because of your ideas or political beliefs (though we could debate whether or not your blog on 'WASP' fashion is a good place to air them), I have no problem with debate and informed discussion, but because of the complete lack of critical thought and reflection put into voicing them. Painting 'liberals' as 'ignorant' is, in fact, 'ignorant'. Moreover, this sort of post made me reflect on what style I have actually seen on your blog, and realize that you are uncritically adopting a uniform, without adding anything to it. Your 'style' is neither unique nor thoughtful, not unlike your political views.
@otsheylnik There are not nearly as many people in your country.. So the situations in our two countries are going to be different, and not entirely equal.. Forbes rated my hometown as the most miserable place in America in 08' needless to say, I l live in a considerably poor place... yet here I stumbled upon a blog where the man dresses nicely and says funny things.. Yet we're arguing about taxes! haha you're all clowns! Get a grip from behind your keyboard.. If you want to help, taxing "The Rich" will never turn my neighbors from their addictions to meth or dissuade them from breaking into my house, when I have nothing.. keep writing your blog, it is still about fashion right?
Can you tell me which jobs went overseas as a result of NAFTA?
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