- Oct 20, 2013
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There seems to be some confused ideas that Republicans have concerning taxes and the minimum wage. These are important issues that a lot of voters are concerned about. That means all Republicans (I am one) need to be correct on it, or as in 2012, they are going to lose a lot of votes, they didn't have to lose.
First of all, raising the INDIVIDUAL tax on multimillionaire incomes, overall is not going to depress the economy. It's not going to harm business activity. In fact, it may help business activity. The corporate tax is a different story. Yes, that should be lowered, and Donald Trump, whom I support is proposing to lower that to 15% (I would have lowered it even more).
I think Trump is making a mistake though in lowering the tax for the individual super rich, from 39% to 25%. He says this will "boost consumer spending, encourage savings and investment, and maximize economic growth." I tend to disagree. For the very rich individuals (Ex. movie stars, pro atheletes, top musicians, etc) who routinely have incomes of around $100 million/year, lowering their tax is just a loss to the tax base, and the economy both. These people spend inordinate amounts of money outside the USA, and their consumer spending helps the economies of other countries. Instead of that, the US jobs that could have been created from tax hikes on them, could put more middle class people into stores in their own home communities, helping US businesses and the US economy.
As for investment, well, let's think about that for a second. Does Beyonce, with an annual income of $115 Million, need to invest (when she's already super rich) ? Who would bother ? Or Floyd Mayweather ($105 Million/year). Or Johnny Depp ($100 Million/year). Also, these super rich individuals ALREADY HAVE the things you're trying to sell. Want to sell cars > They already have them. Want to sell TV sets ? They have them. Computers ? Jewelry ? Guitars ? Got them, got them, got them. By far, boosting consumer spending, and thereby increasing sales in US stores (AKA the economy) is better done by getting money into the pockets of the lower classes, who have long list of things they DON'T HAVE, and want to buy.
So this brings us to the political part. Polls, for years, have consistently been showing widespread popularity for raising the minimum wage (conservatives support it too, 55% to 45%), a position Democrats cling to, and get a lot of votes from. Polls also show huge support for raising taxes on the top rich. Again, Democrats get votes, Republicans lose votes with positions like Trump's (39% reduction to 25%).
Republicans: Stop handing elections to Democrats on a silver platter.
PS - before any of our economics "experts" chime in with the classic (and totally erroneous) talking points of price hikes, layoffs, and relocation, be advised that all those are false, cannot be done by business without incurring huge sales losses or cost increases (in the relocations), and that MW hikes = sales increases$$$, as do tax hikes on the individual super rich.
By raising taxes on the INDIVIDUAL super rich, and raising the minimum wage (a few exceptions could be allowed), business across America will GAIN, not lose. And Republicans will not lose votes. Republicans should keep in mind that Democrats are DEPENDING upon Republicans to oppose these moves. It is high time we Republicans move to deny them that gift.
First of all, raising the INDIVIDUAL tax on multimillionaire incomes, overall is not going to depress the economy. It's not going to harm business activity. In fact, it may help business activity. The corporate tax is a different story. Yes, that should be lowered, and Donald Trump, whom I support is proposing to lower that to 15% (I would have lowered it even more).
I think Trump is making a mistake though in lowering the tax for the individual super rich, from 39% to 25%. He says this will "boost consumer spending, encourage savings and investment, and maximize economic growth." I tend to disagree. For the very rich individuals (Ex. movie stars, pro atheletes, top musicians, etc) who routinely have incomes of around $100 million/year, lowering their tax is just a loss to the tax base, and the economy both. These people spend inordinate amounts of money outside the USA, and their consumer spending helps the economies of other countries. Instead of that, the US jobs that could have been created from tax hikes on them, could put more middle class people into stores in their own home communities, helping US businesses and the US economy.
As for investment, well, let's think about that for a second. Does Beyonce, with an annual income of $115 Million, need to invest (when she's already super rich) ? Who would bother ? Or Floyd Mayweather ($105 Million/year). Or Johnny Depp ($100 Million/year). Also, these super rich individuals ALREADY HAVE the things you're trying to sell. Want to sell cars > They already have them. Want to sell TV sets ? They have them. Computers ? Jewelry ? Guitars ? Got them, got them, got them. By far, boosting consumer spending, and thereby increasing sales in US stores (AKA the economy) is better done by getting money into the pockets of the lower classes, who have long list of things they DON'T HAVE, and want to buy.
So this brings us to the political part. Polls, for years, have consistently been showing widespread popularity for raising the minimum wage (conservatives support it too, 55% to 45%), a position Democrats cling to, and get a lot of votes from. Polls also show huge support for raising taxes on the top rich. Again, Democrats get votes, Republicans lose votes with positions like Trump's (39% reduction to 25%).
Republicans: Stop handing elections to Democrats on a silver platter.
PS - before any of our economics "experts" chime in with the classic (and totally erroneous) talking points of price hikes, layoffs, and relocation, be advised that all those are false, cannot be done by business without incurring huge sales losses or cost increases (in the relocations), and that MW hikes = sales increases$$$, as do tax hikes on the individual super rich.
By raising taxes on the INDIVIDUAL super rich, and raising the minimum wage (a few exceptions could be allowed), business across America will GAIN, not lose. And Republicans will not lose votes. Republicans should keep in mind that Democrats are DEPENDING upon Republicans to oppose these moves. It is high time we Republicans move to deny them that gift.
