by Benn Ray
I have long argued that those who say taxes are inherently prohibitive and have a dampening effect on business don't understand the nature of business. Where there is the potential for profit to occur, there will always be enterprise.
Corporate, Republican and Libertarian talking points have long held that only lower tax rates will result in enterprise and only that will generate more jobs and a healthy economy.
We even see this in local economies where special tax breaks are offered to entice large corporate entities to open big box developments which have a destructive and depleting effect on local business communities. If anyone can more easily afford the tax rates, it is the very same corporations who insist on them being waived before they'll even begin to consider bringing their wage-dampening, social safety-net straining jobs to an area.
But as the past few years of historically low tax rates and record breaking corporate profits and CEO salaries have shown, lower tax rates and big earnings do not result in a trickle down effect.
How many times to we have to keep proving that Trickle Down Economics don't work for those waiting for the trickle?
And those who continue to argue for this type of trickle down, free market, predatory corporate capitalism do not understand the nature of corporate capitalism - which is to maximize profits (or they are being disingenuous).
In this regard, corporate capitalism's interests can be at odds with creating a healthy economy as those at the top of the corporate chain are rewarded while those at the bottom - the weakest, the most replaceable, the most vulnerable - are exploited.
More people with a little more money make for a healthier economy. Fewer people with a lot more money do not. And we've been seeing the latter during the Great Recession.
But hey, don't take my word for it. Take Bill Gates and Warren Buffet's words instead.
Bill Gates: If something is a profitable activity, you're going to engage in it. Yes there are tax rates that are so high that people may work less, but you have to get up to the 50%-60% range before that's the case. ... Even as the economy improves and you end the wars, you're going to have to raise taxes and certainly whatever form it takes, and I'm not an expert on this, the rich should bear a larger increase than the rest. (on FOX News)
Warren Buffet: People like to make money investing. And they make it if the tax rate is 15% each year or if the tax rate is 30% each year. (ABC News)
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