| ManusJustus said:
The only thing that matters is if there is money to be made. Tax the wealthy 80% of their income and they will still start businesses and hire workers to make a profit and meet demand, just like America in the 1950's. You could not tax the wealthy at all, heck you can give them money, but they won't create jobs unless there is money to be made meeting demand. Thats the lesson that both the Republicans and Democrats should have learned with the Bush and Obama tax cuts. |
No, taxing individuals like that will ensure that they pay themselves 5 times as much; and recover the costs by paying their employees less and increasing the cost of their goods/services more. Or, another possibility for these individuals is to pay themselves with stock options, bonuses, or through dividends (if they own enough of the company) and avoid taxes by not earning "income".
If you want to promote economic growth you have to produce a climate where individuals, small companies, and corporations can thrive because of straight forward, well thought out and resonable regulation, fair tax rates which are justified by quality government services, and a highly productive cost-effective work force. Or to put it another way, the complete opposite of what the establishment Republicans and Democrats stand for.
Edit: On a side note, I must ask where are wealthy people supposedly putting their money so that it isn't returned to the economy to produce jobs? Remember that putting money into bank accounts or buying bonds drives lending, and buying any other investment (stocks or commodities) gives someone else cash to spend in the economy.
