I’ve noticed the Republican cure for all of society’s ailments is always tax cuts. Tax cuts will stimulate the economy; tax cuts will create jobs. Tax cuts will help reduce the deficit. Tax cuts will help make health care more efficient. Tax cuts will help you lose weight. Tax cuts will even cure cancer.
Month: January 2010
Time to pay more taxes
What are we waiting for? It is evident that most everyone needs to begin paying a little bit more in taxes now. We know government spending won’t stop. If you don’t like the spending done by the Obama administration, go back and look at the spending by the previous Bush administration because it was just as bad.
Neither party believes they can advocate raising taxes because many people are now convinced that all taxes are evil. Yet, raising taxes is the way out; and the only way out.
Think about this: currently, we are living with low tax rates (the lowest ever), and we are doing this by borrowing from our children. It is our children, in future generations, that will have to suffer from higher tax rates to support our discounted tax rates today. Let’s raise our taxes now to give our children a better future!
That giant sucking sound is corporate profits leaving the U.S.A.
That giant sucking sound you hear is corporations sucking profits out of their businesses and investing it in foreign countries. Corporations seek to improve profits. We expect them to do this, and we don’t believe this to be a bad thing. How do corporations increase profits? They make it either by selling more or by decreasing selling costs. In the last thirty years most corporations have been able to significantly decrease their selling costs by using technology to replace the work done by employees, by outsourcing labor costs to foreign countries, and by purchasing manufacturing inputs from cheaper foreign suppliers.
What do the corporations do with the increased profits from cost cutting? As witnessed by the increase in CEO pay; corporations increasingly pay larger bonuses to the leaders of the corporation. They also use the savings to hire more employees. Not employees in the U.S.; but employees in foreign countries. They also use the profits to invest in foreign economies because the future forecasts indicate that most corporations and employees will be able to get better returns from foreign countries and companies than from U.S. companies. Of course the corporations do spend some of those profits in the U.S. They spend it on economists, politicians, and lobbyists to help preach the message that giving more money to the rich helps everyone because some of that money might trickle down to the poor.
I ask you to do your own research. Where do the rich people spend their money and invest their profits? Is it in creating new jobs in the U.S.; or is it on better returns in foreign countries?