Skip to comments.Low Tax Rates Will Generate Jobs As Well As Bring In More Revenue
Posted on 12/14/2010 5:31:28 PM PST by Kaslin
In the current jobs debate, one simple economic truth is often neglected: Low tax rates produce more government revenue, not less, and allow more private-sector jobs to be created. Why? Low tax rates leave more capital in private hands to be invested in the marketplace.
As simple as this sounds, it's nonetheless often ignored by policy-makers. In short, capital in the hands of private entrepreneurs is invested, which is more efficient than giving it to the government to spend.
Not that job creation takes place at the same pace everywhere when rates are cut. Large corporations, small businesses (including individual proprietorships), and new businesses all create jobs in different ways and at different rates.
But the last two groups small businesses and startups are key because they create 70% of the jobs and will hopefully grow into the giant corporations of tomorrow. Lower tax rates, by giving incentives to entrepreneurs, foster the birth of the "new ideas" that make business creation possible.
New ideas are generated daily by thousands of people. To bring them to fruition, they need capital. Usually this comes from friends, family, and personal savings.
But the key here is that capital comes from savings, i.e. what is left after meeting family, business and, perhaps most importantly, tax expenses.
Funds The Big Ideas
Naturally those that earn large incomes save the most. They put their money to work by investing it, turning it from savings into investment capital.
(Excerpt) Read more at investors.com ...
Less regulation will do the same if not more so.
The House Appropriations Committee, and then the full House CAN "...kill off Fannie Mae and Freddie Mac and other agencies that have done so much to destroy our economy. Zero out the budgets of all the unneeded 'czars.' Take away their offices, their hired help and even their parking places."
The House Appropriations Committee is the key and the war cry must be DE-FUND, DE-FUND, DE-FUND.
Gov’ts have known this fact for centuries—for them to claim and do otherwise is indicative of their premeditated intent and resolve to wreck and destroy our country.
The EPA, Wildlife Endangered Species act, etc., are doing more to send manufacturing overseas than high taxes.
Of course, going over seas and reinvesting those profits overseas to avoid the heavy tax on overseas money brought home avoids the taxes and also avoids the nut case EPA, etc., enforcers.
If you don’t think those renegade rule makers hurt us, just think how much employment and how much the balance of trade would be improved by oil drilling and mining that is at the present banned or over burdened by these idiots.
Cut these agencies down to size, drill baby drill, stop all foreign aid, cut off all money to the UN and watch the deficit change from red to black.
We are never going to have decent employment numbers until we bring manufacturing back to the US. It is beyond stupid to think that we are going to retrain all of those people to be bankers, professors, computer geeks, etc. They are not happy doing that kind of work no more than you and I would be happy doing brain surgery.
Low tax rates WOULD... but there are none around.
And today we are running a deficit of 1.4 trillion dollars. Not tomorrow when the 1% increase in economic activity predicted by this 900 billion tax bill will increase revenue by 23 billion.
Fly over America has been turned into a day park for liberals.
The Dems don’t care about revenue...they just want to raise taxes to punish achievers and use to reward undesirable behaviors. It’s been that way in my adult life.
Which side are we on A or A*? Do you think that the 850billion bill will result in more than 850billion in revenue? Today? When we need it before we default?
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