red states rule
05-22-2011, 06:52 AM
When will the left learn the most basic principal of economics? You will NEVER make poor richer by making the rich poorer
snip
When the tax rate on the highest incomes was 73% in 1921, that brought in less tax revenue than after the tax rate was cut to 24% in 1925. Why? Because high tax rates that people don't actually pay do not bring in as much hard cash as lower tax rates that they do pay. That's not rocket science.
Then and now, people with the highest incomes have had the greatest flexibility as to where they will put their money. Buying tax-exempt bonds is just one of the many ways that "millionaires and billionaires" avoid paying hard cash to the government, no matter how high the tax rates go.
Most working people don't have the same options. Their taxes have been taken out of their paychecks before they get them.
Even more so today than in the 1920s, billions of dollars can be sent overseas electronically, almost instantaneously, to be invested in other countries — creating jobs there, while millions of Americans are unemployed. That is a very high price to pay for class warfare rhetoric about taxing "millionaires and billionaires."
http://www.investors.com/NewsAndAnalysis/Article/572307/201105161817/A-Tragic-Irony-Tax-The-Rich-Hurt-The-Poor.aspx
snip
When the tax rate on the highest incomes was 73% in 1921, that brought in less tax revenue than after the tax rate was cut to 24% in 1925. Why? Because high tax rates that people don't actually pay do not bring in as much hard cash as lower tax rates that they do pay. That's not rocket science.
Then and now, people with the highest incomes have had the greatest flexibility as to where they will put their money. Buying tax-exempt bonds is just one of the many ways that "millionaires and billionaires" avoid paying hard cash to the government, no matter how high the tax rates go.
Most working people don't have the same options. Their taxes have been taken out of their paychecks before they get them.
Even more so today than in the 1920s, billions of dollars can be sent overseas electronically, almost instantaneously, to be invested in other countries — creating jobs there, while millions of Americans are unemployed. That is a very high price to pay for class warfare rhetoric about taxing "millionaires and billionaires."
http://www.investors.com/NewsAndAnalysis/Article/572307/201105161817/A-Tragic-Irony-Tax-The-Rich-Hurt-The-Poor.aspx