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To: WilliamofCarmichael
"It costs a lot for a worker here to support his family";
Very true; and the reason it costs so much is because of the fixed costs in everything which is driven in by the income taxes. Here's how it works.
Worker "A" works at a factory making widgets. The widgets sell for $10 each and are popular and sell well. Politicians come along and say "we have a budget crisis and we need to increase taxes, but we will only tax the rich, not you workers." The workers think "OK, no problem to me" and vote to raise taxes. The workers go along with their jobs without any tax increase OK, but they notice that the widgets are suddenly drifting up in price... $14...$16...$18 and on. Also the price of Gas and groceries and clothes and rent and utilities and appliances is up sharply. Now the paycheck that the worker could live on adequately was not enough. The popularity of the widgets starts to drop due to higher prices and the fact that everyone else's budget is being squeezed. Work drops off at the factory as the sales of widgets drop. The company says that because of the financial pressures, everyone will have to take a 10% pay-cut or they will go bankrupt. The workers and everyone else is angry, but they all grudgingly go along. Then somebody starts importing widgets from China at $10 each and their sales start to go up again, except it also is accompanied with layoff notices at the factory.

The cruel irony is that the worker voting to screw the rich with taxes only screwed himself out of a job.

Please note that the start of the trouble was the tax increase which started a chain reaction through the economy. The politicians spend our tax money to get elected and they will not stop. The double whammy is that the sham of taxing only the rich hits the middle and lower classes even harder, just a few days later as the higher costs move through the economy. Then the triple whammy hits when a production source not within our borders supplies goods without the embedded tax costs. That is when the death spiral of our economy begins. The untaxed competition pushes wages down and the taxes [and regulation and lawsuits] push the cost of everything up. This is a classic "Must have/Can't have" game. We cannot win this game, the only smart move is not to play it.

10 posted on 04/02/2005 9:51:47 PM PST by det dweller too
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To: det dweller too
The cruel irony is that the worker voting to screw the rich with taxes only screwed himself out of a job.

John Kerry's "plan" did not understand this.

11 posted on 04/03/2005 8:14:15 AM PDT by quantim (Victory is not relative, it is absolute.)
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To: det dweller too
I agree with your concerns and your arguments make sense to me.

My only point was that there are "forces" that are more concerned with implementing so-called globalization than responding to American citizens' concerns.

We are not going to change that big picture but we can keep trying to get some fixes. IMO. So..

Keep up the good work!

12 posted on 04/03/2005 9:53:50 PM PDT by WilliamofCarmichael (MSM Fraudcasters are skid marks on journalism's clean shorts.)
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