Tax the Rich? History Proves Alexandria Ocasio-Cortez May be Correct
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Taxes impede economic growth and high taxes kill the economy, right?. This is the belief among many who criticize Representative Alexandria Ocasio-Cortez’s proposal to raise taxes on the wealthy to 70% or more. But what does the evidence really tell us?
Do high taxes really hurt the economy as much as they believe, and will lowering them have much of an impact on stimulating it? The economic literature is clear — tax breaks to encourage economic relocation or investment decisions are inefficient and wasteful. Hundreds of studies reach this conclusion. When businesses are surveyed regarding factors important to their investment decisions, taxes often come in behind proximity to markets, suppliers, and the quality of the labor force. These other factors occupy a larger percentage of a business’s budget than do taxes, and all of them are far more critical to long-term success than are taxes. Businesses occasionally admit this. Nearly 62 percent of those interviewed in a California study on hiring tax credits indicated that they had never or rarely affected their decision to employ individuals.
Anecdotal stories and illustrations also confirm the tax fallacy. High tax states such as Minnesota have generally fared better in terms of economic growth, unemployment, median family incomes, and location of Fortune 500 companies than low tax ones such as Mississippi and Alabama. In many situations high taxes, and with that, government expenditures on education, workforce training, and infrastructure, correlate positively with income, low unemployment, and business retention. One needs to look not just a one side of the equation—taxes—but the other side too—what taxes buy—to see what value businesses get out of them in terms of educated workforces and infrastructure investments. Most debates fail to do this.
January 9, 2019 at 9:38 AM #10196jwirrParticipant
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on the New Deal that FDR put together and an economy that included almost everyone that worked. It has only been since the 1% started trying to destroy the work of the 40s & 50s that we think high taxes are bad. Kind of unpatriotic if you ask me.
January 9, 2019 at 9:58 AM #10203game meatParticipant
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Even under Nixon the top rate was in the 70’s, around the same rate AOC is proposing. And yet, in those days, the earth still spun on its axis, we never got taken over by communists, and we still had plenty of very rich people.
January 9, 2019 at 10:43 AM #10220peacecorpsParticipant
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that progressive taxes are bad for the economy and, by extension, the 99%.
Any one who seriously says that progressive taxes are bad for the economy and the 99% is either ignorant or intentionally lying.
The Big Lie: "Make the lie big, Make it simple, Keep saying it, And eventually they will believe it." AH.
"Arguments must therefore be crude, clear and forcible, and appeal to emotions and instincts, not the intellect." JG
National issues (slavery/racism, income inequality, pandemics and pathetic health care, weak unions) are not solved with more states' rights. Global problems (climate change, migration, trade, war, pandemics) are not solved with more nationalism.
January 9, 2019 at 3:03 PM #10314
January 9, 2019 at 2:58 PM #10310
January 9, 2019 at 3:55 PM #10343chknltlParticipant
- Total Posts: 1,330
(Yeah i know, i know…she’ll get on it right after equally Progressive Hillary Clinton farts monkeys).
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