TwinTownBisonFan wrote:UNI88 wrote:
TTBF, there is something that you are missing ... The government does not have an unlimited ability to raise revenues. The higher the tax rate the lower the incentive to achieve and advance one's self. Unchecked greed can be a bad thing but greed by itself is not necessarily bad. Greed along with pride can push people to accomplish things and these accomplishments create companies/jobs and advancements (medicine, clean energy).
I've preached this before but where would we be without Reagan's tax cuts? Would Bill Gates and Paul Allen have taken the risks to create Microsoft and all of the jobs, millionaires and technological advancements? Or would Bill have mentally decided that it wasn't worth it and taken a job at IBM where he would work and retire as a Director after making $150K/year? What about Michael Dell? Larry Ellison? You can't assume that raising taxes will have no impact on risk-taking and innovation.
It might seem like smoke and mirrors or voodoo economics but raising taxes can actually reduce government revenue and hurt the economy. There is a hidden cost to higher taxes that should be recognized and accounted for.
The great conservative misnomer that increased taxation will reduce the incentive to achieve...
Yes, Gates and Allen would have... because they developed their programs for their own egoes as much as for money... i seriously doubt someone like Gates would say to himself "well, I would develop a superior operating system to revolutionize the role of the computer in daily life... but marginal tax rates will limit my wealth to only 30 billion dollars..."
First, Gates & Allen were examples. I wasn't literally talking about just them. Their egos would have likely driven them to do what they did regardless but there are thousands and thousands of people out there with ideas for a new product, medicine, etc. Some of them will work and some of them won't. But higher taxes will causes some of those thousands not to try to develop their product and start a business. There is a cost in lost jobs and missed opportunities for solutions that could make our lives better (could a replacement for the internal combustion engine or a cure for cancer be delayed as a result).
Second, Cleets Part Deux is exactly right in that it isn't just about taxation but about how the money is spent. The great liberal misnomer that increased taxation will allow the government to make everyone's lives better. The bigger the government gets the less efficient it is. A smaller government could probably put $0.70-0.80 of every $1.00 in taxes to work for its citizens but the more you ask a government to do the more bloated it gets and the more you spend on bureaucracy until eventually you're only spending $0.20-0.30 of every $1.00 in taxes on actual programs. IMO, a $1.00 spent by a reasonably regulated private sector is going to be much more effective than a $1.00 spent by the government.
Asking government to make everything fair and level is asking for the country to be like the ship in WALL-E!