Tax Cuts Don't Lead to Economic Growth, a New 65-Year Study Finds

[joeydb]

Originally Posted by Thepaindispenser

Raising tax rates encourages people to shift money into tax shelters but more importantly in today's global economy more of it goes abroad.

Also there reaches a point where an increase in tax rates raises less revenue.

The wealthy already pay most of the taxes in this country.

The one thing I think we would agree on is closing the tax loop holes created by lobbyists bribing corrupt politicians to benefit certain businesses.

Look up "The Laffer curve." Of course raising tax rates at some point produces less revenue. It has to. A few of the reasons:

Smart people are very motivated to hold on to more of their money. They don't want their "silent partner" of the Federal Government to enjoy trouble-free income at the expense of their sweat.

If they can't find a way to keep more of their money, and if their profits are reduced, they will work LESS or produce LESS and at least recup their time or energy.

Or if they are really put up against it by the taxes, they will close the business and do something else for a living, or retire early, or go on some form of assistance in the hopes that things will get better later. All of these responses give less tax revenue to the government and in fact increase expenses where aid from the government is necessary.