boedicca
Uppity Water Nymph from the Land of Funk
- Feb 12, 2007
- 59,439
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The macro issue raised by the OP is that higher taxes do affect economic activity.
Arguing about whether one person can afford to pay more is beside the point (he's lived in his house since 1987 - many others at his income level who purchased homes in 2005 might not feel quite so sanguine).
When politicians say that tax cuts "cost money" they based their claims on Static Models which assume that changes in taxes do not cause participants in the market to alter their behavior. History has proven how wrong these models are, yet we hear this nonsense spewing from DC ad nauseum.
High Taxes suppress Economic Activity, lower GDP Growth, and result in Less Job Creation.
Add a big dose of new laws and regulatory uncertainty, and we have our present jobless "recovery" (which is really a growth recession - just enough growth to hold unemployment flat}.
Arguing about whether one person can afford to pay more is beside the point (he's lived in his house since 1987 - many others at his income level who purchased homes in 2005 might not feel quite so sanguine).
When politicians say that tax cuts "cost money" they based their claims on Static Models which assume that changes in taxes do not cause participants in the market to alter their behavior. History has proven how wrong these models are, yet we hear this nonsense spewing from DC ad nauseum.
High Taxes suppress Economic Activity, lower GDP Growth, and result in Less Job Creation.
Add a big dose of new laws and regulatory uncertainty, and we have our present jobless "recovery" (which is really a growth recession - just enough growth to hold unemployment flat}.