Anti-Obamanomics: Why Everyone Should Be in Favor of Reducing Taxes on the "Rich" - George Reisman - Mises Institute Contrary to popular belief, high taxes are not passed along to consumers in the form of higher prices. Businesses are already charging as much as they can, on average. However, taxes will have a crippling effect on businesses' ability to invest in the future, hire more people, and expand. Translation: don't eat your seed corn. Translation: you can't have higher living standards without higher productivity! There is no way around this. The prices of things--manufactured goods at least--should be going down over time, if production output grows faster than the population. Supply-siders, pay attention. Tax cuts without spending cuts aren't really a cut. Instead of bleeding the economy dry via taxes, the government bleeds the economy dry by soaking up funds that could have been loaned to businesses. Cliffs Notes: If governments want businesses to remain somewhat competitive, they'll have to avoid taxing them, just like Sweden did. If they refuse to cut spending, like Sweden, they will have to put big taxes on ordinary working people. Which is kind of pointless--taking money from John Q. Public only to turn around and give it right back to him (minus handling fees of course). No wonder so many people have a distaste for "free" market economics. George Reisman, Ph.D., is Pepperdine University Professor Emeritus of Economics. His web site is Capitalism: A Treatise on Economics. His blog is at George Reisman's Blog on Economics, Politics, Society, and Culture.