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To: reaganaut1
Are we on the part of the curve--the "prohibitive region"--where an increase in marginal tax rates will reduce revenues and a decrease in marginal tax rates will increase revenues? For the United States, I think the answer is pretty clearly no.

I think your answer is pretty clearly wrong.

Some other points: Ohio, under governor Celeste a number of years back, was tired of industry moving south, so they passed an "exit tax", whereby any company leaving the state had to deposit a tax equal to six months wages. After the bill was signed into law, Celeste couldn't figure out why new business formations dropped to virtually zero. Fortunately, others with a few neurons still firing figured the problem out and killed the tax.

Finally, with the unemployment problems faced in CA, why would you make it less attractive to do business there for the very people who drive your economic engine? I don't know about the rest of you, but in 45 year in the labor force, I was never once hired by a poor person.

Idiots.

5 posted on 11/18/2012 7:53:41 PM PST by econjack (Some people are as dumb as soup.)
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To: econjack

Kalipornia is clearly in the “prohibitive zone” and a number of states are following them. The whole country is right on that edge and will go off it about Jan 1.

That is when taxes and regulations will make it unprofitable to do business without a government hook up


6 posted on 11/18/2012 7:56:58 PM PST by GeronL (http://asspos.blogspot.com)
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