mikejohnson2006
09-18-2011, 12:55 PM
Why the Economy Grows Like Crazy Amid High Taxes
The raw truth is that the economy has grown faster when taxes were higher, but how can we explain that phenomenon?
November 17, 2008 | LIKE THIS ARTICLE ?
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TAKE ACTIONChange.org|Get Widget|Start an Online Petition � The real-world effects of tax policy are counterintuitive.
Why do high taxes create a stronger economy?
I used to run a small business -- a commercial film production company.
Every time we took a dollar out as personal income, it instantly turned into 50 cents.
If we didn't really need the money, that was an incentive to keep it in the company and to find ways to spend it that took it out of the taxable profit column but increased the value of the company.
High taxes create an incentive to reinvest profits into long-term growth.
With high taxes, the only way to retain the bulk of the wealth created by a business is by reinvesting it in the business -- in plants, equipment, staff, research and development, new products and all the rest.
http://www.alternet.org/economy/106979/
Can anyone debunk or refute this claim that higher taxes will mean that the Rich will keep their money inside their businesses and create Jobs to avoid higher Taxes is this wrong because the Rich business owners will have less money to create Jobs ?
The raw truth is that the economy has grown faster when taxes were higher, but how can we explain that phenomenon?
November 17, 2008 | LIKE THIS ARTICLE ?
Join our mailing list:
Sign up to stay up to date on the latest Economy headlines via email.
TAKE ACTIONChange.org|Get Widget|Start an Online Petition � The real-world effects of tax policy are counterintuitive.
Why do high taxes create a stronger economy?
I used to run a small business -- a commercial film production company.
Every time we took a dollar out as personal income, it instantly turned into 50 cents.
If we didn't really need the money, that was an incentive to keep it in the company and to find ways to spend it that took it out of the taxable profit column but increased the value of the company.
High taxes create an incentive to reinvest profits into long-term growth.
With high taxes, the only way to retain the bulk of the wealth created by a business is by reinvesting it in the business -- in plants, equipment, staff, research and development, new products and all the rest.
http://www.alternet.org/economy/106979/
Can anyone debunk or refute this claim that higher taxes will mean that the Rich will keep their money inside their businesses and create Jobs to avoid higher Taxes is this wrong because the Rich business owners will have less money to create Jobs ?