Friday, January 24, 2014

Trickles and tax cuts

"Trickle Down Theory" Doesn't exist. No one advocates such none sense.

 Here is what conservatives are actually saying:

When you raise tax rates on ANYONE they work harder to hide their money in tax-free investments (which removes it from the economy in general, lowering the number of jobs available for everyone). The total government income goes DOWN because there is less money available to tax.

When you lower tax rates people put their money in more prosperous investments (which creates more jobs), making more money available to tax.

History has proven repeatedly that the government's income goes UP when tax rates go DOWN. History has also shown that the rich pay a higher percentage of the government's total income when the tax rate is lower because a bigger percentage of their money is available to be taxed.

So lower tax rates means more money for the government, and more jobs for everyone else (which then creates more money for the government through more incomes to tax AND fewer people needing gov help).

The problem with liberal's economic ideas is that they seem to think we are all too stupid to change our behavior in response to their laws. They seem to think that if they tax $100 at 50% they actually get $50. What really happens, though, is that the owner of the $100 puts $50 into tax-free savings and the gov gets $25. If they tax the $100 at 25% the owner of the $$$ pays his $25, and invests that $50 into his business which creates two more jobs which are also taxed at %25, another 12% for the gov! EVERYONE wins!

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