Economics 101

Discussion in 'Economy' started by code1211, Jul 25, 2011.

  1. code1211
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    code1211 Senior Member

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    For all of you who think that raising taxes is the way to increase tax revenue, read this article. In indiana, the State has refused to collect sales tax from Amazon.com which already had a pretty big presence in the state and is in the process of adding another 900 jobs before the end of September.

    The State will not collect sales tax from Amazon.com, but will enjoy all of the income from the property taxes, the state income taxes, the sales taxes collected on the products purchased by the payroll dollars, the increased commerce based on the injection of the new dollars from outside of the state and will find in this a great source of revenue that would not have been available if the State had demanded the income tax on the sale of the products offered through Amazon.com.

    This is how reducing taxes increases tax revenue.

    The inability to understand this is why the Big 0 is the worst President in the history of the Republic.

    Sales-tax issues make Indiana attractive to Amazon, but at what cost? | The Indianapolis Star | indystar.com
     
    Last edited: Jul 25, 2011
  2. expat_panama
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    expat_panama Silver Member

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    --and for those that don't care how, at least face the fact that it does.
    [​IMG]
    Both in the early '80's and two decades later recessions brought on lagging revenue, and both time tax-cuts were followed by increase revenue and falling deficits.
     

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