Taxes and the Election

Taxes are a necessity of any government. Taxes allow the government to collect revenues. The Kennedy, Reagan, and Bush tax cuts all raised government revenues because their tax cuts incentivized investment and the growth of the overall economy out weighed the percentage cut in taxes and thus real dollars in tax revenue actually went up. You would think that Democrats would support lower taxes considering they love big government. But the truth is that Democrats are for taxes on the rich so that the poor do not have to pay any taxes. If they can make it where less than 50% of the population actually pays taxes, how can that bottom 50% ever vote for anyone else? It is a smart plan if you ask me. But let’s look at more importantly what taxes do to an overall economy which does effect poor people even if they are not the ones directly paying those taxes.

America pays, if I am not mistaken, the second largest corporation taxes in the world. I think Japan is the only country that pays higher corporation taxes. Corporations in America pay 35% of their total revenues to the government. I want you to think about this scenario. You own your own business. You produce and sell golf carts to golf course owners in the state of Tennessee. Tennessee charges you a 35% tax on all revenues. In the state of Georgia there is another producer of golf carts that can sell golf carts and pay just 10% in taxes to Georgia. Remember, corporation taxes are imbedded in the price of the golf carts. Thus those who have to pay more taxes usually have to charge higher prices. If you have to sell your carts for more to be able to afford the huge tax, do you think the owners of the golf courses are going to buy from you or the person in Georgia that can charge less for the same product? Tennessee Producers of golf carts are going to move to Georgia and produce golf carts because of the competition. Tennessee will lose those jobs and thus the tax revenues will go down as well. The Tennessee economy suffers, the Georgia economy accelerates and despite only getting 10% of each cart sold, they will get far more because every cart is now produced in their state.

Put that in the real world when other countries can produce cars and export them to America and not have to pay the thousands in taxes per vehicle they sell. Those companies can lower the prices of their cars as opposed to domestic produced car makers like GM, FORD, etc... Do you not think Citizens will buy the less expensive car and thus the domestic producers of cars will lose revenue, lose business and thus have to cut costs by laying off workers? They would not be able to compete! Why do you think Michigan’s economy is the worst in the country? Chicago's population is half of what it was a few decades ago, and their per capita income which was #1 in the country years ago, is now not even in the top 60. Michigan has a democratic government that supports high taxes and unions that charge higher prices at their jobs than the rest of the country. Today almost half of the students at Michigan and Michigan State, plan on leaving the state to get a job. Maybe it is time to reelect some politicians that know how an economy works so that jobs will come back to Michigan.

The American people are only required to take 1/2 a year of economics in high school and most degrees in college require very little economics as well. Thus the same American people who can name more characters in the Simpsons television show than they can First Amendment rights are the same Americans that do not understand the effects of higher taxes.

Politicians on the left want more taxes and want to punish corporations and their CEO's for their profits. And yet the government makes more from their business than the business itself! But no criticism of this is heard. Corporations have lowered the prices of goods and services in this country since the early 19th century. People like Rockefeller, Carnegie, J.P. Morgan, and others were criticized for their wealth. Yet their corporations lowered the prices of their goods and more Americans could use those goods now that they were affordable. Maybe Americans need to criticize stupid tax policies that are enforced by politicians on the left who have never had an economics course growing up.