Since it is April I figure some discussion on taxes might be in order. Democrats in Oregon, particularly Governor Kulongoski could learn a bit from this. If you care about the unemployed you should want them to be able to find a job. If you care about low wage earners, you should want them to be able to change jobs to a job that pays more. A person can only get a job in the first place, or change to a better job when the economy is strong and growing so there are enough jobs. Tax cuts will stimulate the economy and make more jobs available. When there are more jobs available, those without a job can get one, and those with a low paying job can switch. This forces low wage payers to increase their minumum wage voluntarily. THAT is good minimum wage policy.
How do tax cuts stimulate the economy?
Let's use a local restaurant as an example. If the Legislature passed a state income tax cut or reduces a sales tax, residents have more disposable income. More disposable income results in more money being either spent in the economy on consumption, or invested which pays for a provider of a good or service to try to make a profit, both mean more money in the economy AND more tax revenue. Using the example of a local restaurant, that would result in more customers for the business owner, which would lead to more taxes being paid to the state, and potentially more employees who would also being added to the tax rolls. This state and its municipalities have used tax credits and tax exemptions to lure business in an effort to create jobs and increase tax revenue.
If tax reductions don't work, why does the legislature pass special exemptions in an effort to encourage some businesses but not realize that everyone can benefit from reduced taxes?
Tax increases, on the other hand, have exactly the opposite effect on the economy. If a small business owner's taxes are increased, the small business owner must raise their prices to maintain a similar profit. That results in higher prices for consumers, thus each consumer has less money to spend on other things and will lead to less sales and fewer jobs. That's certainly no way to help an economy grow.
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It seems as though we need to send the democrats through a basic economics course. I was listening to the radio this morning and the show called the White House comment line to complain about the current gas prices. The radio show said they didn't believe any of the reasons for rising gas prices.
Nancy Pelosi accused the Bush Administration for having a deep interest in big oil companies. Does SUPPLY & DEMAND mean anything to people? Again, basic economic prinicple most people know nothing about. Let's instead just blame the President because we have nothing better to do. What solution is Ms. Pelosi offer? That's right, NONE!! If you don't offer a solution, you're part of the problem.
Yep, but send a communist to an economics course and they will either fall asleep or start reading from Das Kapital and trying to tell you that "markets don't work"... Even though we see what communism did for the hhgmm, former Soviet Union, and China. Now that China is opening up to Market economics they are taking off economically. Hmm go figure. Markets do work.
Good comment, but what do gas prices have anything to do with tax cuts and boosting the economy?
I think the democrats believe that if they don't raise taxes through income or sales tax then Americans are going to take their extra cash and hide it in their mattress so no one else will be able to touch it.
The thing democrats don't get is that the majority of Americans no matter what income bracket they are in, no matter what their financial situation is will spend more if they take more home in their paycheck. We live in a materialistic society with a "want it now mentality" and that my friends = SPENDING!!!
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Everybody needs tax cut because there's people who don't work just to spent all their salary in taxes we need to feed our children pay schools and everything is difficult to pay we don't earn money as the government people.Generic Viagra Buy Viagra
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