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So it seems that tax rates matter but it's only a part of what determines economic growth and investment. Each era of tax cuts and increases that had growth also had other factors affecting the economy besides taxes.
This also applies to investment decisions. I remember reading that for companies locating overseas the tax rates of a country was also just one factor for determining if they would invest in a country. Things such as the educational and job skill level of the population and the infrastructure of a country also seem to play a big part in an investment decision.
Anyway,since taxes aren't the biggest factor in causing growth or hurting it I'd generally recommend a moderate tax level on the rich. This is why I have few problems with going back to the Clinton rate of 39%.
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It affects it (directly) to a much smaller degree than many would admit. But, another aspect of this (that the video doesn't really touch) is what we've seen happen to Great Britain: A sizeable chunk of their wealthy just up and leave the country (the rock & movie stars to name a few). It doesn't help if the wealthy people give you the middle finger and leave.
I agree that tax cuts do NOT stimulate growth. The "trickle down" theory is nothing more than peeing on my leg and telling me it's raining. That's the only thing "trickling down".
However, reality check. Much of Clinton's economic success came from technology. I'm part of that business, and sorry, I'm not giving Clinton credit for it. Especially when the undue attention it received ended up dealing a huge blow to it with the dot-com bust.
As for Bush? Thinly secured mortgages kept the economy afloat for part of his presidency, and we see where that got us. People were using their homes as ATMs. Salaries sure weren't supporting it.
But, another aspect of this (that the video doesn't really touch) is what we've seen happen to Great Britain: A sizeable chunk of their wealthy just up and leave the country (the rock & movie stars to name a few). It doesn't help if the wealthy people give you the middle finger and leave.
I'd think that taxes would matter more if they're considered too high. Taxes in many European countries have probably been considered too high to the point that they do affect individual and business decisions to leave a country. That's why I'am for moderate taxes on the rich.
Another thing the video didn't touch on was that during those years after WWII that the U.S had tax rates of 70 to 90% on the rich,the rich were able to take advantage of tax shelters that ended under Reagan. So I think few rich people were actually paying that full 70 to 90% tax rate in the 50's,60's and 70's.
It affects it (directly) to a much smaller degree than many would admit. But, another aspect of this (that the video doesn't really touch) is what we've seen happen to Great Britain: A sizeable chunk of their wealthy just up and leave the country (the rock & movie stars to name a few). It doesn't help if the wealthy people give you the middle finger and leave.
Versus what? Living and operating here, but employing there? We're not seeing a whole lot of benefit from rich people these days. In fact, I'll go on record as saying government jobs and SMALL business are keeping this country afloat right now.
Versus what? Living and operating here, but employing there? We're not seeing a whole lot of benefit from rich people these days. In fact, I'll go on record as saying government jobs and SMALL business are keeping this country afloat right now.
Of course you dont see benefits from rich people, they are only buying the bonds for the government to spend. Where the hell do you think the money comes from
Btw, I own stock in a company thats had 5 years of straight losses.. Yes, its the rich keeping this company afloat and its 35,000 employees. Surely you arent going to tell me welfare recipiants are buying up debt, are you?
I agree that tax cuts do NOT stimulate growth. The "trickle down" theory is nothing more than peeing on my leg and telling me it's raining. That's the only thing "trickling down".
However, reality check. Much of Clinton's economic success came from technology. I'm part of that business, and sorry, I'm not giving Clinton credit for it. Especially when the undue attention it received ended up dealing a huge blow to it with the dot-com bust.
As for Bush? Thinly secured mortgages kept the economy afloat for part of his presidency, and we see where that got us. People were using their homes as ATMs. Salaries sure weren't supporting it.
It really depends what you are taxing. Tobin taxes and taxing housing capital gains from flipping would have driven money out of the bubble, but its a little late. However raising taxes destroys money which isn't exactly what you want during debt deflation. The time to tax was during the late 90s and at the latest 2001 to keep the bloat out of real estate. If the private sector is still misbehaving like driving up farm land prices then I suppose yanking it out of their hands may be of some use. However we are either going to run deficits or get a depression. Its one or the other.
What should have happened is mortgages principle should have been reduced across the board. People are now locked into mortgages where the price was set by people who had no money bidding for it.
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