At 9/18/08 09:32 PM, BigFuzzyKitten wrote:
At 9/18/08 09:10 PM, RadioactiveRabbit wrote:
Proposed changes in taxes after 2008 General election:
It's more complicated than that. He's proposing it for good reasons, not just to make his campaign less desirable. Don't take the statistics at face value.
Problem is, regardless of his reasons, it will harm the economy and in the end be counter-productive. When the tax-rate goes higher, it is a proven fact that the rich will actually start sheltering more of their income and as such their share of tax-revenue decreases. Thus the poor will begin paying a larger portion of the tax revenue.
Furthermore, tax revenue (income taken in by collecting taxes) is NOT correlated to what the tax rate is set at. Instead, the amount of tax revenue the government collects IS steadily correlated with GDP. Tax revenue has remained steady at approximately 19.50% of GDP...regardless of whether or not taxes are high or low. The problem with high taxes is that they actually supress economic activity which in turn depresses economic activity...and thereby GDP.
A modest tax increase would be good...but not the massive hikes he is proposing on investment income. But this increase would have to be coupled with deep cuts in the federal bureaucracy (and I don't mean the military) and someone finally growing a pair to do something about Social Security and Medicare/aid.
As for the reasons I am against investment taxes...this will curtail people investing/saving in a way that increases GDP.
What we need is someone who knows what the hell they are doing...not someone with good intentions or reasons. Obama is just as wrong a way to go as McCain. Sorry.
